Reimel Furniture Company, Inc., incurred the following costs during 20x2.

Raw material used	$	174,000
Direct labor		322,000

During 20x2, manufacturing overhead of $180,000 was applied to production. Products costing $122,000 were finished, and products costing $132,000 were sold on account for $193,000. There were no purchases of raw material during the year. The beginning balances in the firms inventory accounts are as follows:

Raw material	$	226,000
Work in process		16,000
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 and a partial income statement to reflect the information given above.

Raw-Material Inventory Work-in-Process Inventory Beg. Bal. Beg. Bal. Direct material Direct labor Manufacturing overhead End. Bal. End. Bal. Wages Payable Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal End. Bal. Finished-Goods Inventory Sales Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Receivable Cost of Goods Sold Beg. Bal. Beg. Bal. 195,000 End. Bal. 195,000 End. Bal