Dessert Delite Company produces frozen microwavable desserts. The following accounts appeared in the ledger as of December 31. Additional information: a. Accounts payable is used only for direct-material purchases. b. Underapplied overhead of $2,500 for the year has not yet been closed into cost of goods sold. Required: Complete the below T-accounts.

Raw-Material Inventory Accounts Payable Bal. 1/1 21,200 Bal. 1/1 2,500 136,500 Bal. 12/31 36,000 Bal. 12/31 1,000 Work-in-Process Inventory Finished-Goods Inventory Bal. 1/1 Direct material Direct labor Manufacturing overhead Bal. 12/31 17,000 Bal. 1/1 12,000 150,000 Bal. 12/31 20,000 19,000 Manufacturing Overhead Cost of Goods Sold 710,200 0 710,200 Wages Payable Sales Revenue Bal. 1/1 2,000 150,000 5,000 147,000 Bal. 12/31 0 Accounts Receivable Bal. 1/1 11,200 806,000 Bal. 12/31 15,000