Forest Components makes aircraft parts. The following transactions occurred in July:

Purchased $16,880 of materials on account.

Issued $16,860 in direct materials to the production department.

Issued $1,360 of supplies from the materials inventory.

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

Returned $2,040 of the materials issued to production in (2) to the materials inventory.

Direct labor employees earned $31,400, which was paid in cash.

Paid $17,220 for miscellaneous items for the manufacturing plant. Accounts Payable was credited.

Recognized depreciation on manufacturing plant of $35,400.

Applied manufacturing overhead for the month.

Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,100. Estimated overhead for the year was $387,239.

The following balances appeared in the inventory accounts of Forest Components for July:

	Beginning			Ending
Materials Inventory		?		$	12,480
Work-in-Process Inventory		?			10,600
Finished Goods Inventory	$	2,650			6,960
Cost of Goods Sold		?			73,700
1 1 Materials inventory 16,880 Accounts payable 16,880 2 2 Work-in-processdirect materials 16,860 Materials inventory 16,860 3 3 Manufacturing overhead control 1,360 Materials inventory 1,360 4 4 Accounts payable 16,880 Cash 16,880 5 5 Materials inventory 2,040 Work-in-processdirect materials 2,040 6 6 Work-in-processdirect labor 31,400 Cash 31,400 7 7 Manufacturing overhead control 17,220 Accounts payable 17,220 8 8 Manufacturing overhead control 35,400 Accumulated depreciationplant 35,400 9 9 Work-in-processoverhead 27,946 Applied manufacturing overhead 27,946

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

Materials Inventory Work-In-Process Inventory Beg. bal 11,780 Beg. bal 16,880 16,860 31,400 27,946 2,040 16,860 2 Transferred to Finished Goods 2,040 1,360 End. bal 12,480 End. bal 74,166 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal Beg. bal 0 1,360 17,220 35,400 27,946 End. bal 27,946 End. bal 53,980 Accounts Payable Cash Beg. bal Beg. bal 16,880 4 31,400 6 16,880 1 4 16,880 17,220 End. bal 17,220 End. bal 48,280 Accumulated Depreciation-Property, Plant, and Equipment Beg. bal Finished Goods Inventory Beg. bal Goods completed End. bal 2,650 Transfer to Cost of Goods Sold 35,400 8 2,650 End. bal 35,400 Cost of Goods Sold Beg. bal Goods completed End. bal