Financial Statements of a Manufacturing Firm

The following events took place for LAE Manufacturing Company during January 2014, the first month of its operations as a producer of digital thermometers:

Purchased $57,500 of materials

Used $44,300 of direct materials in production.

Incurred $66,100 of direct labor wages.

Incurred $93,200 of factory overhead.

Transferred $154,700 of work in process to finished goods.

Sold goods with a cost of $123,100.

Earned revenues of $276,600.

Incurred $70,700 of selling expenses.

Incurred $31,100 of administrative expenses.

a. Prepare the January 2014 income statement for LAE Manufacturing Company. LAE Manufacturing Company Income Statement For the Month Ended January 31, 2014 Administrative expenses 31,100 Cost of goods sold 123,100 Operating expenses: Selling expenses Administrative expenses Total operating expenses