Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:

Activity Centers	Cost Drivers	Rate per Cost Driver Unit
Materials handling	Pounds of material handled	$	17	per pound
Quality inspections	Number of inspections	$	200	per inspection
Machine setups	Number of machine setups	$	2,600	per setup
Running machines	Number of machine-hours	$	21.00	per hour

Direct materials costs were $304,000 and direct labor costs were $156,000 during July, when the Fabrication Department handled 3,900 pounds of materials, made 760 inspections, had 40 setups, and ran the machines for 16,000 hours.

Required:

Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in-Process Inventory and out to Finished Goods Inventory.

Materials Inventory Wages Payable Beg. bal Beg. bal. End. bal End. bal. Overhead Applied: Materials Handling Overhead Applied: Quality Inspections Beg. bal Beg. bal. End. bal End. bal. Overhead Applied: Machine Setups Overhead Applied: Running Machines Beg. bal Beg. bal. End. bal End. bal. Work in Process (WIP) Inventory Fabrication Department Finished Goods Inventory Beg. bal Beg. bal End. bal End. bal