Develop a diagram similar to Exhibit 5.2 that presents an overview of the cost flows for the manufacturing costs in the job costing system used by William Felix and Sons in self-study problem 1. Your diagram should ignore revenue and non-manufacturingcosts.

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EXHIBIT 5.2 Cost Flows in a Manufacturing Job Costing System Cost Accumulated on the Balance Sheet Direct materials $3,750,000 Income Statement Revenues and Expenses Revenue 12,500,000 Work in Process Inventory Finished Goods Inventory racc Direct labor $1,250,000 Cost of goods sold Gross margin Operating expenses Operating income 2,250,000 6,500,000 6,000,000 Overhead $1,500,000 3,750,000 Expensed as period costs Sales commissions S625,000 Other selling & admininistration $3,125,000