ACC 550 Assigning Costs to Jobs The following transactions occurred in April at Steve’s Cabinets

7-21. Assigning Costs to Jobs The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm:1. Purchased $80,000 of materials.2. Issued $4,000 of supplies from the materials inventory.3. Purchased $56,000 of materials.4. Paid for the materials purchased in transaction (1).5. Issued $68,000 in direct materials to the production department.6. Incurred direct labor costs of $100,000, which were credited to Wages Payable.7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.8. Applied overhead on the basis of 125 percent of $100,000 direct labor costs.9. Recognized depreciation on manufacturing property, plant, and equipment of $50,000.The following balances appeared in the accounts of Steve’s Cabinets for April:Beginning Ending Materials Inventory……………. $148,200?Work-in-Process Inventory………. 33,000?Finished Goods Inventory………. 166,000 $143,200Cost of Goods Sold…………… 263,400 Requireda. 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.