Required information Exercise 3-31 Manufacturing Cost Flows (LO32.3-5,3-6) [The
ID: 2532453 • Letter: R
Question
Required information Exercise 3-31 Manufacturing Cost Flows (LO32.3-5,3-6) [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 $172 000 320,000 170-000 During 20x2, products costing $120.000 were inished, 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 flirm's inventory accounts are as follows Raw material Work in process Pinished goods $225.000 16,000 32,000 Exercise 3-31 Part 1Explanation / Answer
Solution:
Part 1 --- T-Accounts
Raw Materials Inventory
Work In Process Inventory
Beg. Bal.
225000
172000
Direct materials used (WIP)
Beg. Bal.
16000
120000
Finished Goods Inventory
Direct materials
172000
Direct labor
320000
Ending Bal.
53000
Manufacturing Overhead
170000
Ending Bal.
558000
Wages Payable
Manufacturing Overhead
Beg. Bal.
320000
Work in Process Inventory
Beg. Bal.
0
170000
Work in Process
Cash
320000
Cash
170000
End. Bal
0
Ending Bal.
0
Finished Goods Inventory
Sales Revenue
beg. Bal.
32000
132000
Cost of Goods Sold
beg. Bal.
195000
Accounts Receivable
Work In Process Inventory
120000
Ending Bal.
20000
Ending Bal.
195000
Accounts Receivable
Cost of Goods Sold
beg. Bal
0
Beg. Bal.
0
Sales Revenue
195000
Finished Goods inventory
132000
Ending Bal
195000
Ending Bal.
132000
Part 2a --- Partial Balance sheet
Partial Balance Sheet
As of December 31, 20X2
Inventory:
Raw Materials Inventory
$53,000
Work In Process Inventory
$558,000
Finished Goods Inventory
$20,000
$631,000
Part 2(b) – Income Statement
$$
Sales Revenue
$195,000
Less: Cost of Goods Sold
$132,000
Gross Profit
$63,000
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Raw Materials Inventory
Work In Process Inventory
Beg. Bal.
225000
172000
Direct materials used (WIP)
Beg. Bal.
16000
120000
Finished Goods Inventory
Direct materials
172000
Direct labor
320000
Ending Bal.
53000
Manufacturing Overhead
170000
Ending Bal.
558000
Wages Payable
Manufacturing Overhead
Beg. Bal.
320000
Work in Process Inventory
Beg. Bal.
0
170000
Work in Process
Cash
320000
Cash
170000
End. Bal
0
Ending Bal.
0
Finished Goods Inventory
Sales Revenue
beg. Bal.
32000
132000
Cost of Goods Sold
beg. Bal.
195000
Accounts Receivable
Work In Process Inventory
120000
Ending Bal.
20000
Ending Bal.
195000
Accounts Receivable
Cost of Goods Sold
beg. Bal
0
Beg. Bal.
0
Sales Revenue
195000
Finished Goods inventory
132000
Ending Bal
195000
Ending Bal.
132000
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