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

1. Purchased $168,500 of materials.
2. Used $149,250 ofdirect materialsin production.
3. Incurred $360,000 of direct labor wages.
4. Incurred $120,000 offactory overhead.
5. Transferred $600,000 ofwork in processtofinished goods.
6. Sold goods for $875,000.
7. Sold goods with acostof $525,000.
8. Incurred $125,000 of selling expense.
9. Incurred $80,000 of administrative expense.

Using the information given, complete the following:

a. the January income statement for Digital Vibe Manufacturing Company.

Digital Vibe Manufacturing CompanyIncome StatementFor the Month Ended January 31

$

$Operating expenses:

$

Total operating expenses

$

b.Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

Digital Vibe Manufacturing CompanyInventory BalancesFor the Month Ended January 31Inventory balances on January 31:

Materials$

Work in process$

Finished goods$