Preparation of Journal entries and income statement for a manufacturing firm. Katherine's Outdoor Furniture, a manufacture specializing in lawn, deck, and poolside furniture, showed the following amount in its inventory accounts on January 1, 2008:

Katherine's Outdoor Furniture engaged in the following transactions during January 2008:
(1) Acquired raw materials costing $667,200 on account.
(2) Issued, to producing departments, raw materials costing $689,100.
(3) Paid salaries and wages during January for services received during the month as follows:

(4) Calculated depreciation on building and equipment during January as follows:

(5) Incurred and paid other operating costs in cash as follows:

(6) The cost of goods manufactured and transferred to the finished goods storeroom totaled $1,564,500.
(7) Sales on account during January totaled $2,400,000.
(8) A physical inventory taken on January 31, revealed a finished goods inventory of $210,600.
(a) Present Journal entries to record the transactions and events that occurred during January.
(b) Prepare an income statement for Katherine's Outdoor Furniture for January. Ignore income taxes.

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Raw Materials Inventory . Work-in-Process Inventory. Finished Goods Inventory $226,800 427,900 182,700