Savod Ch 7 and 8 Knowledge Check due Check Forest Components makes aircraft parts. The following transactions occurred in July 1. Purchased $16,880 of materials on account. 2. Issued $16,740 in direct materials to the production department 3. Issued $1,380 of supplies from the materials inventory 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,090 of the materials issued to production in (2) to the materials inventory 6. Direct labor employees earned $32,900, which was paid in cash 7 Purchased miscellaneous items for the manufacturing plant for $17,250 on account 8. Recognized depreciation on manufacturing plant of $35,300. 9. Applied manufacturing overhead for the month Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate Ar the beginning of the year, management estimated that direct labor costs for the year would be $434 500 Estimated overhead for the year was $417120 The following balances appeared in the inventory accounts of Forest Components for July Beginning Ending Materials Inventory 512,520 Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold > $2.640 2 10,550 7.060 74,100 +7 Next > Prepare T-accounts to show the flow of costs during the period from Materials Inventory through cost of Goods Sold. Materials inventory Work In Process inventory Beg bal Beg bal 16 880 16.740 Transferred to Finished Goods 2,090 1,380 850 End bal End bal Applied Manufacturing Overhead Manufacturing Overhead Control Beg bal Beg bal 0 End bal 0 End bal ce: Ch 7 and 8 Knowledge Check (due. Saved Help Save & Exit Check m Accounts Payable Cash Beg bal Beg bal End bal 0 End bal Finished Goods Inventory Accumulated Depreciation--Property, Plant, and Equipment Beg, bal Beg bal Goods completed End bal Transfer to Cost of Goods Sold 0 End bal Cost of Goods Sold Beg bal Goods completed End bal 0