Reimel Furniture Company, Inc incurred the following costs during 20x 2.

Direct material used .....................................$174000

Direct labor .................................................... 324,000

Manufacturing overhead applied ............... 180000

During 20x 2, products costing $120,000 were finished, and products costing $I320O0 were sold on account for $195,000. There were no purchases of raw material during the year. The beginning balances in the firm’s inventory accounts are as follows:

Raw material ......................$227,000

Work In process ..................... 18000

Finished goods ..................... 30,000

Required:

1. Prepare T-accounts to show the how of costs through the company’s manufacturing accounts during 20x 2.

2. Prepare a partial balance sheet and a partial income statement to reflect the information given above.