The following transactions occurred in June at Fast Wheels, Inc., a custom bicycle manufacturer: 1. Purchased $2,000 of materials. 2. Issued $100 of supplies from the materials inventory. 3. Purchased $2,500 of materials. 4. Paid for the materials purchased in transaction (1). 5. Issued $3,000 in direct materials to the production department6. Incurred direct labor costs of $2,500, which were credited to Wages Payable. 7. Paid $2,150 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. 8. Applied overhead on the basis of 125 percent of direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $500. The following balances appeared in the accounts of Fast Wheels for June: Beginning Ending Materials Inventory . . . . . . . . . . . . . . . . $ 900 ? Work-in-Process Inventory . . . . . . . . . . 1,650 ? Finished Goods Inventory . . . . . . . . . . 6,500 $ 3,650 Cost of Goods Sold . . . . . . . . . . . . . . ...... 7,300 Required a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the fl ow of costs during the period from Materials Inventory through Cost of Goods Sold. Question 2 Tappan, Inc., manufactures one product and accounts for costs using a job cost system. You have obtained the following information from the corporations books and records for the year ended December 31, Year 1: Total manufacturing cost during the year was $3,000,000 based on actual direct material, actual direct labor, and applied manufacturing overhead. Manufacturing overhead was applied to work in process at 75 percent of direct labor dollars. Applied manufacturing overhead for the year was 25 percent of the total manufacturing cost during the year. Required Compute actual direct material used, actual direct labor, and applied manufacturing overhead. ( Hint: The total of these costs is $3,000,000.)