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 $64,600 of materials
2. Used $49,700 of direct materials in production.
3. Incurred $74,300 of direct labor wages.
4. Incurred $104,700 of factory overhead.
5. Transferred $173,800 of work in process to finished goods.
6. Sold goods for $310,700.
7. Sold goods with a cost of $138,200.
8. Incurred $79,500 of selling expenses.
9. 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