Question
Financial Statements of a Manufacturing Firm The following events took place for LAE Manufacturing Company during January 2014, the first month of its operations as
Financial Statements of a Manufacturing Firm
The following events took place for LAE Manufacturing Company during January 2014, the first month of its operations as a producer of digital thermometers:
Purchased $45,900 of materials
Used $35,300 of direct materials in production.
Incurred $52,800 of direct labor wages.
Incurred $74,400 of factory overhead.
Transferred $123,500 of work in process to finished goods.
Sold goods with a cost of $98,200.
Earned revenues of $220,800.
Incurred $56,500 of selling expenses.
Incurred $24,800 of administrative expenses.
a. Prepare the January 2014 income statement for LAE Manufacturing Company.
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