Financial Statements of a Manufacturing Firm

The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a producer of digital video monitors:

Purchased $68,100 of materials.

Used $52,400 of direct materials in production.

Incurred $78,300 of direct labor wages.

Incurred $110,300 of factory overhead.

Transferred $183,200 of work in process to finished goods.

Sold goods for $327,600.

Sold goods with a cost of $145,700.

Incurred $83,800 of selling expense.

Incurred $36,800 of administrative expense.

Using the information given, complete the following:

a. Prepare the March income statement for Digital Vibe Manufacturing Company.

Digital Vibe Manufacturing Company
Income Statement
For the Month Ended March 31
		$
		$
Operating expenses:
	$
Total operating expenses
		$

b. Determine the inventory balances at the end of the first month of operations.

Digital Vibe Manufacturing Company
Inventory Balances
For the Month Ended March 31
Inventory balances on March 31:
Materials	$
Work in process
Finished goods