Exercise 16.6 Flow of Costs through Manufacturing Accounts L.O. 3, 4, 5 The Bags and Luggage Company had the following account balances as of January 1: Direct Materials Inventory $ 8,700 Work in Process Inventory 76,500 Finished Goods Inventory 53,000 Manufacturing Overhead - 0 - During the month of January, all of the following occurred: 1. Direct labor costs were $42,000 for 1,800 hours worked. 2. Direct materials costing $26,000 and indirect materials costing $4,000 were purchased. 3. Sales commissions of $15,500 were earned by the sales force. 4. $22,000 worth of direct materials were used in production. 5. Advertising costs of $6,300 were incurred. 6. Factory supervisors earned salaries of $11,158. 7. Indirect labor costs for the month were $3,000. 8. Monthly depreciation on factory equipment was $4,500. 9. Utilities expense of $7,169 was incurred in the factory. 10. Luggage with manufacturing costs of $69,000 were transferred to finished goods. 11. Monthly insurance costs for the factory were $4,200. 12. $5,000 in property taxes on the factory were incurred and paid. 13. Luggage with manufacturing costs of $94,697 were sold for $172,177. a. Assume If Bags and Luggage assigns manufacturing overhead of $34,400, what will be the balances in the Direct Materials, Work in Process, and Finished Goods Inventory accounts at the end of January? (Input all amounts as positive values. Omit the "$" sign in your response.) Direct materials inventory $ Work in process inventory $ Finished goods inventory $ b. As of January 31, what will be the balance in the Manufacturing Overhead account? (Input all amounts as positive values. Omit the "$" sign in your response.) Manufacturing overhead $ c. What was Bags and Luggage's operating income for January? (Input all amounts as positive values.Omit the "$" sign in your response.) Operating income $ Please help me understand this