Could you also provide explanation and journal entries

P19-34B WireComm manufactures specialized components used in wireless communication. Initially, the company manufactured the components for its own use, but it gradually began selling them to other wireless companies as well. The trial balance of WireComm's manufacturing operations on January 1, 2009, is as follows: January 1 balances in the subsidiary ledgers were: - Materials ledger: electronic parts, $15,300; indirect materials, $1,700. - Work in process ledger: Job 90,$44,000. - Finished goods ledger: transmitters, $38,000; power supplies, $23,000. January transactions are summarized as follows: a. Payments on account, $81,000. b. Marketing and general expenses incurred and paid, $22,000. c. Collections on account, $195,000. d. Materials purchased on credit: electronic parts, $49,000; indirect materials, $6,000. e. Materials used in production (requisitioned): - Job 90: electronic parts, $4,000. - Job 91: electronic parts, $38,000. - Indirect materials, $7,000. f. Manufacturing wages incurred during January, $56,000, of which $50,500 was paid. Wages payable at December 31 were paid during January, \$5,500. g. Labor time records for the month: Job 90, \$6,000; Job 91, $28,000; indirect labor, $22,000. h. Depreciation on manufacturing plant and equipment, $7,500. i. Manufacturing overhead was allocated at the predetermined rate of 120% of direct labor cost. j. Jobs completed during the month: Job 90, 1,000 transmitters, at total cost of $61,200. k. Credit sales on account: all of Job 90 for $125,000. 1. Close the Manufacturing Overhead account to Cost of Goods Sold. Requirements 1. Open T-accounts for the general ledger, the materials ledger, the work in process ledger, and the finished goods ledger. Insert each account balance as given, and use the reference Bal. (pp. 965-967) 2. Record the January transactions directly in the accounts, using the letters as references. WireComm uses a perpetual inventory system. (pp. 965-967) 3. Prepare a trial balance at January 31. 4. Use the Work in Process T-account to prepare a schedule of cost of goods manufactured for the month of January. (You may want to review Exhibit 18-10.) 5. Prepare an income statement for the month of January. To calculate cost of goods sold, you may want to review Exhibit 18-7. (Hint: In transaction 1, you closed any under/overallocated manufacturing overhead to Cost of Goods Sold. In the income statement, show this correction as an adjustment to Cost of Goods Sold. If manufacturing overhead is underallocated, the adjustment will increase Cost of Goods Sold. If overhead is overallocated, the adjustment will decrease Cost of Goods Sold.)