Required information
Exercise 3-31 Manufacturing Cost Flows (LO 3-2, 3-5, 3-6)
[The following information applies to the questionsdisplayed below.]
Reimel Furniture Company, Inc. incurred the following costs during20x2.
|
| Direct material used | $ | 173,000 |
| Direct labor | | 321,000 |
| Manufacturing overhead | | 170,000 |
|
During 20x2, products costing $120,000 were finished, and productscosting $132,000 were sold on account for $195,000. There were nopurchases of raw material during the year. The beginning balancesin the firm’s inventory accounts are as follows:
|
| Raw material | $ | 225,000 |
| Work in process | | 16,000 |
| Finished goods | | 28,000 |
|
Exercise 3-31 Part 1
Required:
1. Prepare T-accounts to show the flow of coststhrough the company’s manufacturing accounts during 20x2.
Raw material inventory
work in process inventory
wages payable
manufacturing overehad
finished goods inventory
sales revenue
accounts receivable
Cost of goods sold
2. Prepare a partial balance sheet and apartial income statement to reflect the information givenabove.
