The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm:
1. Purchased $80,000 of materials.
2. Issued $4,000 of supplies from the materials inventory.
3. Purchased $56,000 of materials.
4. Paid for the materials purchased in transaction (1).
5. Issued $68,000 in direct materials to the production department.
6. Incurred direct labor costs of $100,000, which were credited to Wages Payable.
7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied overhead on the basis of 125 percent of $100,000 direct labor costs.
9. Recognized depreciation on manufacturing property, plant, and equipment of $50,000.
The following balances appeared in the accounts of Steve's Cabinets for April:

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.

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Beginning .. $148,200 166,000 ss Inventory Finished Goods Inventory Cost of Goods Sold $143,200 263,400