Problem 7-58 (Algo) Tracing Costs in a Job Company (LO 7-2, 3) The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. 1. Purchased $55,600 in materials on account. 2. Issued $3,400 in supplies from the materials inventory to the production department. 3. Paid for the materials purchased in transaction (1). 4. Issued $27,400 in direct materials to the production department. 5. Incurred wage costs of $61,000, which were debited to Payroll, a temporary account. Of this amount, $15,400 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $45,600 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 6. Recognized $29,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $29,000 was debited to Payroll and credited to Fringe Benefits Payable. 7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. 8. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,300. 9. Applied overhead on the basis of 160 percent of direct labor costs. 10. Recognized depreciation of $19,150 on manufacturing property, plant, and equipment. Required: a. Prepare journal entries to record these transactions. b. The balances that appeared in the accounts of Apex Manufacturing are shown as follows Ending Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $58,425 15,225 64,150 - $ 53,600 108,275 Prepare T-accounts to show the flow of costs during the period