Business Transactions Ava spent the month of December talking to various suppliers in order to determine her structure. She added cost data to the information in Table 1. The bakery opened for business on January 1, 2020 as planned. During the month of Janda the business purchased and used 200 pounds of flour, 200 pounds of sugar, 67 dozen eggs and had 4 bad eggs to dispose of during the month?, 20 baking soda boxes, 200 pounds of butter, 100 pounds of raisons, 50 bottles of rum, and the other ingredients (one box of each for a total of four) all from one supplier on account. Manufacturing overhead is applied to production at 4 dollars per cake. Ava purchased the oven using the start-up capital and paid all salaries. Her nieces worked 300 hours in total for the month January was a very good month for the bakery since it baked 200 cakes and sold all for cash. The average selling price was S50 per cake. All manufacturing overhead is closed out at month end. The supplier was paid at month end. Required (Worth 50 points): Document January transactions using T-accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T- accounts (assume such transactions where applicable, are paid in cash) islati ora Reporting Ava believes the Statement of Cost of Goods Manufactured would be helpful in managing the business. Required (Worth 30 points): Prepare the Statement of Cost of Goods Manufactured for January Also, prepare an Income Statement for the month of January TABLE 1: COST INFORMATION Item and Ingredients Conventional oven Standard per Cake n/a Cost $6,000 (depreciated over 5 years on a SL basis No salvage value) SO (provided by the landlord) S (naid for by dad) $24 per 8 pounds bag $2 per dozen $15 per 25 pounds bag $6 per 14 pounds box $6.50 per 4 pounds $8 per 2 pounds Refrigerator Daking pans, licenses Baking flour Eggs Sugar Baking soda Butter Raisins Others (currants, diced date, nutmeg, molasses) Cash Register n/a 1 pound 4 eggs 1 pound 1 pound 2 pound $30 for all 4 boxes per month $12 per month (rental for 2 years) $12 per bottle $50 per month % qtr of bottle Rum (alcohol) Utilities includes gas, electric and water) Mobile phone (business) Salary- Ava Salary-nieces $50 per month $500 per month $8 per hour 1 person 1.5 hours per cake Salary-aunt Accountant Estimated MOH $100 per month $100 per month $4.00 per cake