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 $ 173,000 319,000 180,000 During 20x2, products costing $121,000 were finished, and products costing $132,000 were sold on account for $193,000. 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 $ 225,000 16,000 28,000

Answer 1

REIMEL FURNITURE COMPANY, INC.
Partial Balance Sheet
As of December 31, 20x2
Inventory :
Raw materials	52000
Work in process	567000
Finished goods	17000
Total inventory	636000

Working notes :
Beginning raw materials	225000
(+) Purchase of raw materials	0
(-) Direct materials used	173000
Ending raw materials	52000
Beginning work in process	16000
(+) Direct materials used	173000
(+) Direct labor	319000
(+) Manufacturing overhead	180000
(-) Finished goods produced	121000
Ending work in process	567000
Beginning finished goods	28000
(+) Finished goods produced	121000
(-) Cost of goods sold	132000
Ending finished goods	17000

REIMEL FURNITURE COMPANY, INC.
Partial Income Statement
For the year Ended December 31, 20x2
Sales	193000
Cost of goods sold	132000
Gross profit	61000