Jamie spent the month of December talking to various suppliers in order to determine her cost structure. She has presented cost data information in Table 1.

TABLE 1: COST INFORMATION

Item and Ingredients	Cost	Standard per Cake
Conventional oven	$6,000 (depreciated over 5 years on a SL basis; no salvage value)	n/a
Refrigerator	$0 (provided by landlord)
Baking pans, licenses	$0 (paid for by dad)	n/a
Baking flour	$24 per 8 pounds bag	1 pound
Eggs	$2 per dozen	4 eggs
Sugar	$15 per 25 pounds bag	1 pound
Baking soda	$6 per 14 pounds box
Butter	$6.50 per 4 pounds	1 pound
Raisins	$8 per 2 pounds	pound
Others (currants, diced date, nutmeg, molasses)	$30 for all 4 boxes per month
Cash Register	$12 per month (rental for 2 years
Rum (alcohol)	$12 per bottle	qtr of bottle
Utilities (includes gas, electric, and water)	$50 per month
Mobile phone (business)	$50 per month
Salary Jamie	$500 per month
Salary nieces	$8 per hour	1 person 1.5 hours per cake
Salary aunt	$100 per month
Accountant	$100 per month
Estimated MOH	$4.00 per cake

J&J Bakery Inc. opened for business on January 1, 2015 as planned. During the month of January, the business purchased and used 200 pounds of flour, 200 pounds of sugar, 67 dozen eggs, 20 baking soda boxes, 200 pounds of butter, 100 pounds of raisins, 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 during production of the cakes at a rate of $4.00 per cake.

Jamie 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 $50 per cake. All manufacturing overhead is closed out at month end by making the appropriate journal entry to the Cost of Goods Sold Account. The supplier was paid at month end.

Required: Document J&J Bakery Inc. 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 - presume such transactions where applicable, are paid in cash.