1. Journal Entries for the Cost Accounting Cycle. On January 1, the ledger of the Phinney Furniture Company contained, among other accounts, the following: Finished Goods, $25,000; Work in Process, $30,000; Materials, $15,000. During January, the following transactions were completed:

(a) Materials were purchased at a cost of $28,000.

(b) Direct materials in the amount of $21,000 were issued from the storeroom.

(c) Storeroom requisitions for indirect materials and supplies amounted to $3,200.

(d) The total payroll for January amounted to $31,000, including marketing salaries of $7,500 and administrative salaries of $5,500. Labour time tickets show that $15,500 of the labour cost was direct labour.

(e) Various factory overhead costs were incurred for $12,000 on account.

(f) Total factory overhead is charged to the work in process account.

(g) Cost of production completed in January totalled $58,000, and finished goods in the shipping room on January 31 totalled $18,000.

(h) Customers to whom shipments were made during the month were billed for $88,000. (Also record entry for cost of goods sold.)

Required: Prepare journal entries for the transactions, including the recording, payment, and distribution of the payroll.