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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
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 $43,200 of materials.
- Used $33,300 of direct materials in production.
- Incurred $49,700 of direct labor wages.
- Incurred $70,000 of factory overhead.
- Transferred $116,200 of work in process to finished goods.
- Sold goods for $207,800.
- Sold goods with a cost of $92,400.
- Incurred $53,100 of selling expense.
- Incurred $23,300 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 |
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