Financial Statements of a Manufacturing Firm

The following events took place for Air Temp Manufacturing Company during January, the first month of its operations as a producer of digital thermometers:

Purchased $47,300 of materials.

Used $36,400 of direct materials in production.

Incurred $54,400 of direct labor wages.

Incurred $76,600 of factory overhead.

Transferred $127,200 of work in process to finished goods.

Sold goods with a cost of $101,200.

Earned revenues of $227,500.

Incurred $58,200 of selling expense.

Incurred $25,500 of administrative expense.

b. Determine the inventory balances at the end of the first month of operations. (Show the transactions in T accounts for materials, work in process, and finished goods.)

Air Temp Manufacturing Company---Inventory Balances

Materials=

Work in process=

Finished goods=