Financial Statements of a Manufacturing Firm

The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

1. Purchased $142,900 of materials.
2. Used $126,600 of direct materials in production.
3. Incurred $305,300 of direct labor wages.
4. Incurred $101,800 of factory overhead.
5. Transferred $508,800 of work in process to finished goods.
6. Sold goods for $742,000.
7. Sold goods with a cost of $445,200.
8. Incurred $106,000 of selling expense.
9. Incurred $67,800 of administrative expense.

Using the information given, complete the following:

a. Prepare the January income statement for Technology Treasures Manufacturing Company.

Technology Treasures Manufacturing Company
Income Statement
For the Month Ended January 31
Administrative expenses		$fill in the blank 3f19bf0af05c073_2
Cost of goods sold		fill in the blank 3f19bf0af05c073_4
Selling expenses		$fill in the blank 3f19bf0af05c073_6
Operating expenses:
Revenues	$fill in the blank 3f19bf0af05c073_8
Work in process	fill in the blank 3f19bf0af05c073_10
Total operating expenses		fill in the blank 3f19bf0af05c073_11
Net income		$fill in the blank 3f19bf0af05c073_13

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a. Consider the differences in the income statement for merchandising and manufacturing businesses. Remember to include cost of goods sold.

b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

Technology Treasures Manufacturing Company
Inventory Balances
For the Month Ended January 31
Inventory balances on January 31:
Materials	$fill in the blank f38bc7fd700f013_1
Work in process	$fill in the blank f38bc7fd700f013_2
Finished goods	$fill in the blank f38bc7fd700f013_3

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b. Show the transactions in T accounts for Materials, Work in Process, and Finished Goods.

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Partially correct