Reimel Furniture Company, Inc., incurred the following costs during 20x2. Raw material used $ 172,000 Direct labor 324,000 During 20x2, manufacturing overhead of $170,000 was applied to production. Products costing $122,000 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 $ 227,000 Work in process 18,000 Finished goods 32,000

Exercise 3-31 Part 1 Required: 1. Prepare T-accounts to show the flow of costs through the companys manufacturing accounts during 20x2.