1.

Financial Statements of a Manufacturing Firm

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

1. Purchased $53,200 of materials
2. Used $41,000 of direct materials in production.
3. Incurred $61,200 of direct labor wages.
4. Incurred $86,200 of factory overhead.
5. Transferred $143,100 of work in process to finished goods.
6. Sold goods for $255,900.
7. Sold goods with a cost of $113,800.
8. Incurred $65,400 of selling expenses.
9. Incurred $28,700 of administrative expense.

Using the information given, complete the following:

a. Prepare the January income statement for Digital Vibe Manufacturing Company.

Digital Vibe Manufacturing Company
Income Statement
For the Month Ended January 31
Revenues		$
Cost of goods sold
Gross profit		$
Operating expenses:
Selling expenses	$
Administrative expenses
Total operating expenses
Net income		$

b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of 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

2.

Statement of Cost of Goods Manufactured for a Manufacturing Company

Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:

Inventories	January 1		January 31
Materials	$204,750		$176,090
Work in process	139,230		119,740
Finished goods	106,470		119,740

Direct labor		$368,550
Materials purchased during January		393,120
Factory overhead incurred during January:
	Indirect labor	39,310
	Machinery depreciation	23,750
	Heat, light, and power	8,190
	Supplies	6,550
	Property taxes	5,730
	Miscellaneous costs	10,650

a. Prepare a cost of goods manufactured statement for January.

Disksan Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
			$
Direct materials:
	$
	$
		$
Factory overhead:
	$
Total factory overhead
Total manufacturing costs incurred during January
Total manufacturing costs			$
Cost of goods manufactured			$

b. Determine the cost of goods sold for January. $