18-3 Exercises & Problems 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: a. Purchased $66,600 of materials b. Used $51,300 of direct materials in production. C. Incurred $76,600 of direct labor wages. d. Incurred $107,900 of factory overhead. e. Transferred $179,200 of work in process to finished goods. f. Sold goods for $320,300. 9. Sold goods with a cost of $142,500. h. Incurred $81,900 of selling expenses. i. Incurred $36,000 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 142,500 x Cost of goods sold 320,300 Gross profit 177,800 Operating expenses: Selling expenses 81,900 Administrative expenses 36,000 117,900 Total operating expenses Net income 59,900 18-3 Exercises & Problems a. Prepare the January income statement for Digital Vibe Manufacturing Company. Digital Vibe Manufacturing Company Income Statement For the Month Ended January 31 Revenues 142,500 X Cost of goods sold 320,300 x Gross profit 177,800 Operating expenses: Selling expenses 81,900 Administrative expenses 36,000 117,900 Total operating expenses Net income 59,900 Feedback 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 15,300 Work in process 56,600 Finished goods 141,100 x