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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
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:
- Purchased $64,600 of materials
- Used $49,700 of direct materials in production.
- Incurred $74,300 of direct labor wages.
- Incurred $104,700 of factory overhead.
- Transferred $173,800 of work in process to finished goods.
- Sold goods for $310,700.
- Sold goods with a cost of $138,200.
- Incurred $79,500 of selling expenses.
- Incurred $34,900 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 | ||
Revenues | $fill in the blank | |
Cost of goods sold | fill in the blank | |
Gross profit | $fill in the blank | |
Operating expenses: | ||
Selling expenses | $fill in the blank | |
Administrative expenses | fill in the blank | |
Total operating expenses | fill in the blank | |
Net income | $fill in the blank |
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 |
Work in process | $fill in the blank |
Finished goods | $fill in the blank |
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