Howie Stars produces starts for elementary teachers to reward their students. Howie Stars' trial balance on June 1 follows:
HOWIE STARS Trial Balance June 1, 2012
			Balance
		Account Title	Debit	Credit
		Cash	$14,000
		Accounts receivable	155,000
		Inventories:
		Materials	5,700
		Work in process	39,400
		Finished goods	20,400
		Plant assets	200,000
		Accumulated depreciation		$72,000
		Accounts payable		127,000
		Wages payable		1,700
		Common stock		142,000
		Retained earnings		91,800
		Sales revenue
		Cost of goods sold
		Manufacturing overhead
		Marketing and general expenses
		Total	$434,500	434,500
June 1 balances in the subsidiary ledgers were as follows:
Materials subledger: Paper, $4,700; indirect materials, $1,000
Work in process subledger: Job 120, $39,400; $0 for Job 121
Finished goods subledger: Large Stars, $9,400; Small Stars, $11,000
June transactions are summarized as follows:
a. Collections on account, $152,000.
b. Marketing and general expenses incurred and paid, $28,000.
c. Payments on account, $36,000.
d. Materials purchases on credit: Paper, $22,900; indirect materials, $3,800.
e. Materials used in production (requisitioned): Job 120: paper , $850 Job 121: paper, $7,650 Indirect materials, $1,000
f. Wages incurred and assigned during June, $35,000. Labor time records for the month: Job 120, $3,500; Job 121, $16,600; indirect labor, $14,900.
g. Wages paid in June include the balance in the Wages payable account at May 31 and $32,200 of wages incurred during June.
h. Depreciation on plant and equipment, $2,600.
i. Manufacturing overhead was allocated at the predetermined rate of 50% of direct labor cost.
j. Jobs completed during the month: Job 120, 300,000 Large Stars at total cost of $45,500.
k. Credit sales on account: all of Job 120 for $111,000.
l. Closed the Manufacturing overhead account to Cost of goods sold.
Requirements:
1. Journalize the transactions for the company. Howie uses a perpetual inventory system.
2. Open T-accounts for the general ledger, the Materials ledger, the Work in process ledger, and the Finished goods 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, 2012.
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.