Paulson Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The following are Paulson’s transactions during July 2019:

July 5 Received materials costing \($3,000\) from a supplier. The materials were purchased on account.

9 Requisitioned \($9,000\) of materials for use in the factory, consisting of \($7,500\) of direct materials and \($1,500\) of indirect materials.

11 Recorded the factory payroll: \($20,250\) of direct labor and \($2,250\) of indirect labor.

17 Incurred various overhead costs totaling \($21,000\). (Credit Accounts Payable.)

20 Applied \($30,000\) of manufacturing overhead to the products being manufactured.

23 Completed product costing \($20,000\) and moved it to the warehouse.

26 Sold goods with a product cost of \($4,500\) on account for $7,500.

Required

a. Set up T-accounts for the following four accounts and post the July 1, 2019, balances: Materials Inventory, $10,500; Work-in-Process Inventory, $37,500; Finished Goods Inventory, $15,000;

and Cost of Goods Sold, $45,000.

b. Record the transactions listed above in general journal form, post relevant portions to the four T-accounts, and balance the four accounts.