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 $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 16,000 30,000

Answer 1

Answer :-

• Completion of T accounts:

Raw Material Inventory
Beg Bal	$                      226,000.00		$                226,000.00
Work In Process Inventory		$                                     173,000.00	$                  53,000.00
End Bal	$                         53,000.00
Wages Payable
Beg Bal	$                                        -		$                                 -
Work In Process Inventory		$                                     319,000	$ 319,000
End Bal		$                                     319,000
Finished Goods Inventory
Beg Bal	$                         30,000.00		$                  30,000.00
Work In Process Inventory	$                      122,000.00		$                152,000.00
Cost of Goods Sold		$                                     132,000.00	$                  20,000.00
End Bal	$                         20,000.00
Accounts receivables
Beg Bal	$                                        -		$                                 -
Sales Revenue	$                      197,000.00		$                197,000.00
End Bal	$                      197,000.00
Work In Process Inventory
Beg Bal	$                         16,000.00		$                  16,000.00
Direct Material	$ 173,000.00		$                189,000.00
Direct Labor	$                      319,000.00		$                508,000.00
Manufacturing Overhead	$                      180,000.00		$                688,000.00
Finished Goods Inventory		$                                     122,000.00	$                566,000.00
End Bal	$                      566,000.00
Manufacturing Overhead
Beg Bal	$                                        -
Work In Process Inventory		$                                     180,000.00
End Bal	$                                        -
Sales Revenue
Beg Bal	$                                       -		$                                 -
Accounts receivables		$                                     197,000.00	$                197,000.00
End Bal		$                                     197,000.00
Cost of Goods Sold
Beg Bal	$                                        -		$                                 -
Finished Goods Inventory	$                      132,000.00		$                132,000.00
End Bal	$                      132,000.00

	Partial Balance Sheet
	As of December 31,20X2
Inventory:
Raw material			$53,000
Work in process			$566,000
Finished goods			$20,000

Reimel Furniture Company
Partial Income Statement
For the year ended Dec 31, 20x2
Sales Revenue	$           197,000.00
Cost of Goods Sold	$           132,000.00
Gross Profits	$             65,000.00