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 $54,300 of materials
2. Used $41,800 of direct materials in production.
3. Incurred $62,400 of direct labor wages.
4. Incurred $88,000 of factory overhead.
5. Transferred $146,100 of work in process to finished goods.
6. Sold goods for $261,200.
7. Sold goods with a cost of $116,200.
8. Incurred $66,800 of selling expenses.
9. Incurred $29,300 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 Selling expenses Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income 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