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 $48,700 of materials
2. Used $37,500 of direct materials in production.
3. Incurred $56,000 of direct labor wages.
4. Incurred $78,900 of factory overhead.
5. Transferred $131,000 of work in process to finished goods.
6. Sold goods for $234,200.
7. Sold goods with a cost of $104,200.
8. Incurred $59,900 of selling expenses.
9. Incurred $26,300 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
		$
		$
Operating expenses:
	$
Total operating expenses
		$

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