The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of custom tools:
1. Purchased $17,000 of materials.
2. Issued $16,800 in direct materials to the production department.
3. Issued $1,200 of supplies from the materials inventory.
4. Paid for the materials purchased in transaction (1).
5. Returned $2,200 of the materials issued to production in (2) to the material inventory.
6. Direct labor employees earned $31,000, which was paid in cash.
7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited.
8. Recognized depreciation on manufacturing plant of $35,000.
9. Applied manufacturing overhead for the month.
Tarnsdale 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 $434,000. Estimated overhead for the year was $403,620.
The following balances appeared in the inventory accounts of Tarnsdale Fabricators for
January:

Required
a. Prepare journal entries to record these transactions.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of GoodsSold.

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Beginning Ending Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold $12,600 10,500 $7,100 74,500 2 $2,600 2 ..