Reference no: EM132939065

Question - A manufacturing plant has one production department and uses process costing. On January 1, all inventories have zero balances. 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

15,000 electric (plant)

20,000 depreciation on production equipment

7,000 salaries of sales force

During January, the company started and fully completed 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?