Student Stars produces stars for elementary teachers to reward their students. Student Stars€™ trial balance on June 1 follows:

June 1 balances in the subsidiary ledgers were as follows:
€¢ Raw Materials Inventory subsidiary ledger: Paper, $4,300; indirect materials, $1,400
€¢ Work-in-Process Inventory subsidiary ledger: Job 120, $41,000; Job 121, $0
€¢ Finished Goods Inventory subsidiary ledger: Large Stars, $9,100; Small Stars, $12,200 June transactions are summarized as follows:
a. Collections on account, $154,000.
b. Selling and administrative expenses incurred and paid, $30,000.
c. Payments on account, $41,000.
d. Materials purchases on account: Paper, $21,600; indirect materials, $4,000.
e. Materials requisitioned and used in production:
Job 120: Paper... $550
Job 121: Paper... $7,850
Indirect materials.. $1,200
f. Wages incurred during June, $35,000. Labor time records for the month: Job 120, $3,250; Job 121, $18,500; indirect labor, $13,250.
g. Wages paid in June include the balance in Wages Payable at May 31 plus $33,000 of wages incurred during June.
h. Depreciation on plant and equipment, $2,700.
i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 60% of direct labor cost.
j. Jobs completed during the month: Job 120 with 900,000 Large Stars at a total cost of $46,750.
k. Sales on account: all of Job 120 for $100,000.
l. Adjusted for overallocated or underallocated manufacturing overhead.
Requirements
1. Journalize the transactions for the company.
2. Open T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger. Insert each account balance as given, and use the reference Bal. Post the journal entries to the T-accounts using the transaction letters as a reference.
3. Prepare a trial balance at June 30, 2016.
4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.
5. Prepare an income statement for the month of June.

STUDENT STARS Trial Balance June 1, 2016 Balance Account Title Cash Accounts Receivable Inventories: Debit 24,000 175,000 Credit Raw Materials Work-in-Process Finished Goods 5,700 41,000 21,300 220,000 Plant Assets Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Manufacturing Overhead Selling and Administrative Expenses Totals $ 73,000 133,000 2,000 143,000 136,000 $487,000 487,000