Process Costing - Introduction A manufacturing plant has one production department and uses process costing. On January 2, all inventories have zero balance. During January, the company incurred the following costs (company paid cash for all items except depreciation): $ 40,000 direct materials purchased and used in production 25,000 direct labor MOH S15,000 electric (plant) 220,000 depreciation on production equipment 7,000 salaries of sales force During January, the company produced 1,000 units. Of these, 600 units were sold for $130 per unit. Required 1) Provide all financial accounting entries for January. 2) Provide GAAP income statement for January 3) What is balance in finished goods at end of January