Reimel Furniture Company Inc incurred the following costs du

Reimel Furniture Company, Inc. incurred the following costs during 20x2. Direct material used Direct labor Manufacturing overhead $174,000 324,000 180,000 During 20x2, products costing $120,000 were finished, and products costing $132,000 were sold on account for $195,000. 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 $227,000 18,000 30,000

Solution

Note: Since there is no information regarding application of manufacturing overheads to work in process in the question, entire overheads incurred has been applied.

Accounts Receivable
Beg. Bal.
Sales	195000
End. Bal.	195000
Raw Material Inventory
Beg. Bal.	227000
		174000	Direct material used
End. Bal.	53000
Wages Payable
Beg. Bal.
		324000	Direct labor
End. Bal.		324000
Finished Goods Inventory
Beg. Bal.	30000
Completed	120000	132000	Cost of goods sold
End. Bal.	18000
Work in Process Inventory
Beg. Bal.	18000
Direct materials	174000
Direct labor	324000
Manufacturing overhead	180000	120000	Completed and tranferred
End. Bal.	576000
Manufacturing Overhead
Beg. Bal.
Overhead incurred	180000	180000	Overhead applied
End. Bal.	0
Sales Revenue
Beg. Bal.
		195000	Sales
End. Bal.		195000
Cost of Goods Sold
Beg. Bal.
Finished goods sold	132000
End. Bal.	132000