Question

Required information The following information applies to the questions displayed below Reimel Furniture Company, Inc. incurred the following costs during 20x2. Direct material used Direct labor Manufacturing overhead $173,000 320,000 160,000 During 20x2, products costing $122,000 were finished, and products costing $132,000 were sold on account for $197,000. There were no purchases of raw material during the year. The beginning balances in the firm's inventory accounts are as follows: Raw material Work in process Finished goods $226,000 14,000 30,000 Required: 1. Prepare T-accounts to show the flow of costs through the company's manufacturing accounts during 20x2.

Answer 1

Answer:

Raw materials inventory					Work in process inventpry
Beg.Bal	2,26,000				Beg.Bal	14,000
		1,73,000	used		DM	1,73,000
					DL	3,20,000
end bal	53,000				MOH	1,60,000
							1,22,000	finished
					end bal	5,45,000
Wages payable					Manufacturing overhead
Beg.bal		-			beg bal		-
		3,20,000	WIP				1,60,000	WIP
end bal		3,20,000			end bal		1,60,000
finished goods inventory					Sales revenue
Beg bal	30,000				Beg.bal		-
WIP	1,22,000						1,97,000	A/R
		1,32,000	COGS
End bal	20,000				End bal		1,97,000
Account receivable					Cost of goods sold
Beg.bal	-				Beg bal	-
sales	1,97,000				finished	1,32,000
end bal	1,97,000				End bal	1,32,000