[The following information applies to the questions displayed below.]

Jay Sports Equipment Company, Inc. incurred the following costs during 20x2.

Direct material used	$172,000
Direct labor	321,000
Manufacturing overhead applied	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	16,000
Finished goods	30,000

Exercise 3-30 Part 1

Required:

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.