The City of Muncie had the following transactions related to the purchase and use of supplies inventory. The City of Muncie operates on a June 30th fiscal year

a. There were $28,000 of supplies on hand on July 1.

b. On February 3, supplies were ordered at an estimated cost of $65,000.

c. Supplies were received on February 8th and the actual cost of $62,000 was paid in cash.

d. On June 30th, $24,000 in supplies remain.

Prepare the entries to record the inventory transaction of the City of Muncie using the consumption method of accounting for inventory. Prepare any necessary year end adjusting and closing entries.