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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 the materials inventory.3. Purchased $11,200 of materials.4. Paid for the materials purchased in the transaction (1).5. Issued $13,600 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 EndingMaterials Inventory $29,640Work-in-Process Inventory 6,600Finished Goods Inventory 33,200 $28,640Cost of Goods Sold 52,680Required:(a) Prepare journal entries to record the transactions.(b) Prepare T-accounts to show the ow of costs during the period from Materials Inventory through Cost of Goods Sold.
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