The following transactions occurred in April at Steves Cabinets, a custom cabinet firm.

1. Purchased $23,500 of materials on account.

2. Issued $1,550 of supplies from the materials inventory.

3. Purchased $12,700 of materials on account.

4. Paid for the materials purchased in transaction (1) using cash.

5. Issued $15,100 in direct materials to the production department.

6. Incurred direct labor costs of $27,500, which were credited to Wages Payable.

7. Paid $22,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

8. Applied overhead on the basis of 125 percent of $27,500 direct labor costs.

9. Recognized depreciation on manufacturing property, plant, and equipment of $11,500.

The following balances appeared in the accounts of Steves Cabinets for April.

	Beginning			Ending
Materials Inventory	$	31,890			?
Work-in-Process Inventory		8,100			?
Finished Goods Inventory		34,700		$	29,390
Cost of Goods Sold					54,930

Required:

a. Prepare journal entries to record the transactions.

b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

• A

  Purchased $23,500 of materials on account.

• B

  Issued $1,550 of supplies from the materials inventory.

• C

  Purchased $12,700 of materials on account.

• D

  Paid for the materials purchased in transaction (1) using cash.

• E

  Issued $15,100 in direct materials to the production department.

• F

  Incurred direct labor costs of $27,500, which were credited to Wages Payable.