Jay Sports Equipment Company, Inc. incurred the following costs during 20x2.

Direct material used.................................................................. $226,200

Direct labor....................................................................... 421,200

Manufacturing overhead applied.............................................. 234,000

During 20x2, products costing $156,000 were finished, and products costing $171,600 were sold on account for $253,500. There were no purchases of raw material during the year. The beginning balances in the firm’s inventory accounts are as follows:

Raw material............................................................................. $295,100

Work in process......................................................................... 23,400

Finished goods.......................................................................... 39,000

Required:

1. Prepare T-accounts to show the flow of costs through the company’s manufacturing accounts during 20x2.

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