Preparation of journal entries and income statement for a manufacturing firm. Best Furniture. Inc.. a furniture manufacturer, showed the following amounts in its inventory accounts on January 1 :

Raw Materials Inventory $226,800 Work-in-Process Inventory 427,900 Finished Goods Inventory 182,700 Best Furniture engaged in the following transactions during January:

(1) Acquired raw materials costing $667,200 on account.

(2) Issued, to producing departments, raw materials costing $689,100.

(3) Paid salaries and wages during January for services received during the month as follows:

Factory Workers $432,800 Sales Personnel 89,700 Administrative Officers 22,300

(4) Calculated depreciation on buildings and equipment during January as follows:

Manufacturing Facilities $182,900 Selling Facilities 87,400 Administrative Facilities 12,200

(5) Incurred and paid other operating costs in cash as follows:

Manufacturing $218,500 Selling 55,100 Administrative 34,700

(6) The cost of goods manufactured and transferred to the finished goods storeroom totaled

$1,564,500.

(7) Sales on account during January totaled $2,400,000.

(8) A physical inventory taken on January 31 revealed a finished goods inventory of $210,600.

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

b. Prepare an income statement for Best Furniture, Inc. for January. Ignore income taxes.