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 $53,500 of materials
2. Used $41,200 ofdirect materialsin production.
3. Incurred $61,500 of direct labor wages.
4. Incurred $86,700 offactory overhead.
5. Transferred $143,900 ofwork in processtofinished goods.
6. Sold goods for $257,300.
7. Sold goods with acostof $114,500.
8. Incurred $65,800 of selling expenses.
9. Incurred $28,900 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-

Cost of goods sold-

Gross profit-

Operating expenses:

Selling expenses-

Administrative expenses-

Total operating expenses-

Net income-