Question

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

Direct material used	$172,000
Direct labor	320,000
Manufacturing overhead applied	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	$225,000
Work in process	16,000
Finished goods	30,000
Required: 1. Prepare T-accounts to show the flow of costs through the company’s manufacturing accounts during 20x2. NEED t-accounts for raw-material inventory, work in progress inv, wages payable, manufacturing overhead, finished-goods inventory, sales rev, accounts receivable, cost of goods sold.

2.	Prepare a partial balance sheet and a partial income statement to reflect the information given above.

Answer 1