Exercise 3-31 Manufacturing Cost Flows (LO 3-2, 3-5, 3-6 ) Reimel Furniture Company, Inc. incurred the following costs during 20x2. Direct material used $174,000 Direct labor 324,000 Manufacturing overhead applied 180,000 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 firm's inventory accounts are as follows: Raw material Work in process $227,000 18,000 Finished goods 30,000 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. (Hint: See Exhibit 3-2.)