Premium Manufacturers is a manufacturer. Positive selected account balances for the company as of January 1, 2022, were as follows:

During the month of January, Premium Manufacturers had the following transactions:
●    Salaries: $6,800. Of this amount, $2,200 is selling and administrative; the rest is for production as follows: $2,700 for direct labor, $1,900 for indirect labor.
●    Prepaid rent expired (was used up): $1,400 relates to factory rent, $600 is administrative.
●    Depreciation: $1,800; $1,600 relates to the machinery in the factory.
●    Purchases of raw materials on credit: $12,000; includes $11,000 for direct materials and $1,000 for indirect materials.
●    Sales of finished goods for the month, all on credit: $35,000.
●    Payment of accounts payable: $11,000.
●    Collection of accounts receivable: $40,000.
●    Issued to production: $10,700; includes $10,000 for direct materials and $700 for indirect materials.
●    Transferred to finished goods: the completed units.
●    Recorded the sales and the cost of goods sold.
   
On January 31, 2022, the respective inventory balances were as follows:    

a. Use the T-accounts to trace the cost flow.

b. Prepare an income statement for the month of January 2022, as well as a cost of goods manufactured schedule.

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Cash Accounts receivable Raw materials inventory (all direct materials) Work in process inventory Finished goods inventory Prepaid rent Buildings and equipment Accumulated depreciation Accounts payable $15,000 $8,000 $5,000 $7,000 $9,000 $3,000 $40,000 $8,000 $6,000