Preparation of journal entries and an income statement for a manufacturing firm. Famous Horse Garment Factory manufactures jeans for Guess and Jordache in Hong Kong. It showed the following amounts in Hong Kong dollars in its inventory accounts on January 1:

(6) The cost of goods completed and transferred to the finished goods storeroom totaled \(\$ 468,000\).
(7) Sales on account during January totaled \(\$ 650,000\).
(8) A physical inventory taken on January 31 revealed a finished goods inventory of \(\$ 140,000\).

a. Present journal entries to record the transactions and events that occurred during January.

b. Prepare an income statement for Famous Horse Garment Factory for January. Ignore income taxes.

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Raw Materials Inventory Work-in-Process Inventory Finished Goods Inventory $ 80,000 192,000 146,000 The firm engaged in the following transactions during January: (1) Acquired raw materials costing $245,400 on account. (2) Issued, to production, raw materials costing $238,400. (3) Paid salaries and wages during January for services received during the month as follows: Factory Workers Sales Personnel Administrative Personnel $175,200 37,800 54,800