Financial Statements of a Manufacturing Firm
The following events took place for Digital Vibe ManufacturingCompany during January, the first month of its operations as aproducer of digital video monitors:
- Purchased $67,700 of materials
- Used $52,100 of direct materials in production.
- Incurred $77,900 of direct labor wages.
- Incurred $109,700 of factory overhead.
- Transferred $182,100 of work in process to finished goods.
- Sold goods for $325,600.
- Sold goods with a cost of $144,900.
- Incurred $83,300 of selling expenses.
- Incurred $36,600 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement forDigital Vibe Manufacturing Company.
| Digital Vibe Manufacturing Company |
| Income Statement |
| For the Month Ended January 31 |
| | $ |
| | |
| | $ |
| Operating expenses: | | |
| $ | |
| | |
| Total operating expenses | | |
| | $ |
b. Determine the Materials Inventory, Work inProcess Inventory, and Finished Goods Inventory balances at the endof the first month of operations.
| Digital Vibe Manufacturing Company |
| Inventory Balances |
| For the Month Ended January 31 |
| Inventory balances on January 31: | |
| Materials | $ |
| Work in process | |
| Finished goods | |
