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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

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.

Required:

Complete the following T-accounts

image text in transcribed

Raw-Material Inventory Bal. 1/1 21,000 Accounts Payable 2,600 Bal. 1/1 136,500 1,000 Bal. 12/31 Bal. 12/31 36,000 Work-in-Process Inventory 17,000 Finished-Goods Inventory 12,000 Bal. 1/1 Bal. 1/1 Direct material Direct labor Bal. 12/31 20,000 Manufacturing overhead Bal. 12/31 19,000 Manufacturing Overhead Cost of Goods Sold 710,100 0 710,100 Sales Revenue Wages Payable 2,000 Bal. 1/1 147,000 5,000 Bal. 12/31 0 Accounts Receivable Bal. 1/1 11,100 806,000 Bal. 12/31 15,000

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