Perfecto Pizza Company produces microwavable pizzas. The following accounts appeared in Perfectos ledger as of December 31.

Additional information:

a. Accounts payable is used only for direct-material purchases.

b. Underapplied overhead of $2,700 for the year has not yet been closed into cost of goods sold.

Complete the following T-accounts.

Raw-Material Inventory					Accounts Payable
Bal. 1/1	21,200						2,600	Bal. 1/1
						136,500
Bal. 12/31	36,000						1,000	Bal. 12/31
Work-in-Process Inventory					Finished-Goods Inventory
Bal. 1/1	17,000				Bal. 1/1	12,000
Direct material
Direct labor					Bal. 12/31	20,000
Manufacturing overhead
Bal. 12/31	19,000
Manufacturing Overhead					Cost of Goods Sold
						710,000
	0					710,000
Wages Payable					Sales Revenue
		2,000	Bal. 1/1
	147,000
		5,000	Bal. 12/31				0
Accounts Receivable
Bal. 1/1	11,000
		806,000
Bal. 12/31	15,000