The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing.

1. Purchased $55,100 in materials on account.
2. Issued $2,900 in supplies from the materials inventory to the production department.
3. Paid for the materials purchased in transaction (1).
4. Issued $26,900 in direct materials to the production department.
5. Incurred wage costs of $56,000, which were debited to Payroll, a temporary account. Of this amount, $14,900 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $41,100 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
6. Recognized $24,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $24,000 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 $33,800.
9. Applied overhead on the basis of 175 percent of direct labor costs.
10. Recognized depreciation of $18,650 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.

	Beginning			Ending
Materials Inventory	$	57,675
Work-in-Process Inventory		14,475
Finished Goods Inventory		63,650		$	52,600
Cost of Goods Sold					105,775

Prepare T-accounts to show the flow of costs during the period.

• A. Record material purchases of $55,100 on account.

• B. Record issue of $2,900 supplies of material to production department.

• C Record payment made for $55,100 purchase on account.

• D. Record issue of $26,900 direct material to production department.

• E. Record wage cost incurred $56,000 of which $14,900 was payable as taxes.

• F. Record entry to recognize fringe benefit cost of $24,000.

• G. Record payroll cost of which 60% represents direct labor, 30% indirect manufacturing labor and 10% administrative and marketing costs.

• H. Record payment of $33,800 for utilities, maintenance etc.

• I. Record application of manufacturing overhead at 175% of direct labor cost.

• J. Record depreciation of $18,650 on manufacturing plant and equipment.

Part B. Prepare T-accounts to show the flow of costs during the period.

Materials Inventory Work-in-Process Inventory Beg. Bal. Beg. Bal. Goods Completed End. Bal. End. Bal. Manufacturing Overhead Control Applied Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Payable Cash Beg. Bal. Beg. Bal End. Bal. End. Bal. Payroll Payroll Taxes Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Fringe Benefits Payable Administrative and Marketing Costs Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accumulated Depreciation-Property, Plant, and Equipment Finished Goods Beg. Bal. Beg. Bal El Goods Completed End. Bal. End. Bal. Cost of Goods Sold Beg. Bal. Goods Sold End. Bal