Question
Reimel Furniture Company, Inc. incurred the following costs during 20x2. Direct material used $ 174,000 Direct labor 320,000 Manufacturing overhead 160,000 During 20x2, products costing
Reimel Furniture Company, Inc. incurred the following costs during 20x2.
Direct material used | $ | 174,000 |
Direct labor | 320,000 | |
Manufacturing overhead | 160,000 | |
|
During 20x2, products costing $121,000 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 firms inventory accounts are as follows:
Raw material | $ | 225,000 |
Work in process | 18,000 | |
Finished goods | 30,000 | |
|
1. Prepare T-accounts to show the flow of costs through the companys manufacturing accounts during 20x2.
2. Prepare a partial balance sheet (just inventory) and a partial income statement to reflect the information given above.
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