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.