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Perfecto Pizza Company produces microwavable pizzas. The following accounts appeared in Perfecto's ledger as of December 31. Additional information: a. Accounts payable is used only for direct-material purchases. b. Underapplied overhead of $2,700 for the year has not yet been closed into cost of goods sold. Required: Complete the following T-accounts. Answer is complete but not entirely correct. Raw-Material Inventory Bal 1/1 21,200 Bal. 1/1 134,800 119,900 Bal Bal. 12/31 36,000 12/31 Work-in-Process Inventory Bal 1/1 17,000 Bal. 1/1 Direct material 119,900 718,100 C Bal. Direct labor 150,000 12/31 Manufacturing 450,000 overhead Bal. 12/31 19,000 Accounts Payable 2,700 136,500 134,800 1,000 Finished-Goods Inventory 12,000 718,100 710,000 20,000
Bal. 1/1 Direct material. Direct labor Manufacturing overhead Bal. 12/31 Bal. 1/11 Bal. 12/31 Work-in-Process Inventory. 17,000 119,900 718,100 150,000 450,000 19,000 Manufacturing Overhead 542,900 92,700 Wages Payable 2,000 147,000 150,000 5,000 Accounts Receivable 11,100 810,000 806,000 15,000 450,200 x Bal. 1/1 Bal. 12/31 Bal. 1/1 Bal, 12/31 Finished-Goods Inventory 12,000 718,100 710,000. 20,000 Cost of Goods Sold 710,000 710,000 Sales Revenue 810,000 810,000