Teacher Stars produces stars for elementary teachers to reward their students. Teacher Stars' trial balance on June 1 follows:

Teacher StarsTrial Balance June 1, 2016

Balance

Account Title

Debit

Credit

Cash

$22,000

Accounts Receivable

188,000

Inventories:

Raw Materials

6,300

Work-in-Process

40,000

Finished Goods

22,800

Plant Assets

300,000

Accumulated Depreciation

$68,000

Accounts Payable

133,000

Wages Payable

2,000

Common Stock

147,000

Retained Earnings

229,100

Sales Revenue

Cost of Goods Sold

Manufacturing Overhead

Selling and Administrative Expenses

Total

$579,100

$579,100

June1 balances in the subsidiary ledgers were as follows:

Raw Materials Inventory subsidiaryledger: Paper,$ 4,700 indirect materials, $1,600
	Work-in-Process Inventory subsidiary ledger: Job 120,$40,000 Job 121, $0
bullet	Finished Goods Inventory subsidiary ledger: Large Stars,$9,600; Small Stars, $13,200

June transactions are summarized as follows:

Collections on account, $144,000. b. Selling and administrative expenses incurred and paid, $27,000. c. Payments on account, $37,000. d. Materials purchased on account: Paper, $23,300; indirect materials, $4,000. e. Materials requisitioned and used in production: Job 120: Paper, $ 450 Job 121: Paper, $ 7,550 Indirect materials, $ 1,200 f. Wages incurred during , . Labor time records for the month: Job 120, ; Job 121, ; indirect labor, . June $34,000 $3,250 $16,600 $14,150 g. Wages paid in include the balance in the Wages Payable at plus of wages incurred during . June May 31 $31,200 June h. Depreciation on plant and equipment, $3,400. i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 60% of direct labor cost. j. Jobs completed during the month: Job 120 with 900,000 Large Stars at a total cost of $45,650. k. Sales on account: all of Job 120 for $100,000. l. Adjusted for overallocated or underallocated manufacturing overhead.

1. Journalize the transactions for the company. 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger have been opened for you along with each account's balance as given. Post the journal entries to the T-accounts using the transaction letters as a reference. 3. Prepare a trial balance at June 30, 2016. 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June. 5. Prepare an income statement for the month of June.