EX 18-10 Financial statements of a manufacturing firm

OBJ.4

ENd folowing events took place for Technology Treasures Manufaduring Company during

January, the first month of its operations as a producer of digital video monitors:

-=16,300 material

uSe

a. Purchased $142,900 of materials.

2b. Used $126,600 of direct materials in production.

c. Incurred $305,300 of direct labor wages.

d. Incurred $101,800 of factory overhead.

e. Transferred $508,800 of work in process to finished goods.

E. Sold goods for $742,000. reVenue (Sale)

)8. sold goods with a cost of $445,200. (Cost of

goods

sold?

- Grossprofit

2n5 @h. Incurred $106,000 of selling expense.

2

+ total operating expons

Ti.

Incurred $67,800 of administrative expense.

Using the information given, complete the following:

a. Prepare the January income statement for Technology Treasures Manufacturing

Company.

b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods

Inventory balances at the end of the first month of operations.