The following transactions occurred in October at Pawnee Workshops, a custom manufacturer of furniture:
1. Purchased $16,000 of materials.
2. Issued $800 of supplies from materials inventory.
3. Purchased $11,200 of materials.
4. Paid for materials purchased in transaction (1)
5. Issued $13,000 in direct materials to the production department.
6. Incurred direct labor costs of $20,000, which were credited to Wages Payable.
7. Paid $21,200 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied overhead on the basis of 125 percent of $20,000 direct labor costs.
9. Recognized depreciation on manufacturing property, plant, and equipment of $10,000.
The following balances appeared in the accounts of Pawnee Workshops for October:
Beginning Ending
Materials Inventory $29,640
Work-in-Process Inventory 6,600
Finished Goods Inventory 33,200 $28,640
Costs of Goods Sold 52,680
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.