Required information

Exercise 3-31 Manufacturing Cost Flows (LO 3-2, 3-5, 3-6)

[The following information applies to the questions displayed below.] Reimel Furniture Company, Inc. incurred the following costs during 20x2.

Direct material used	$	173,000
Direct labor		321,000
Manufacturing overhead		170,000

During 20x2, products costing $120,000 were finished, and products costing $132,000 were sold on account for $195,000. There were no purchases of raw material during the year. The beginning balances in the firms inventory accounts are as follows:

Raw material	$	225,000
Work in process		16,000
Finished goods		28,000

Exercise 3-31 Part 1

Required:

1. Prepare T-accounts to show the flow of costs through the companys manufacturing accounts during 20x2.

Raw material inventory

work in process inventory

wages payable

manufacturing overehad

finished goods inventory

sales revenue

accounts receivable

Cost of goods sold

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