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:

a. Purchased $138,800 of materials.

b. Used $94,780 ofdirect materialsin production.

c. Incurred $181,280 of direct labor wages.

d. Incurred $213,200 offactory overhead

.e. Transferred $428,060 ofwork in processtofinished goods.

f. Sold goods for $654,000.g. Sold goods with acostof $360,750.

h. Incurred $85,320 of selling expense.

i. Incurred $70,650 of administrative expense.

Required:Using the information given, complete the following:

a. Prepare the March income statement for Digital Vibe Manufacturing Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries

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

Amount Descriptions

Administrative expenses

Cost of goods sold

Gross profit

Net income

Revenues

Selling expenses

a. Using the information given, prepare the March income statement for Digital Vibe Manufacturing Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Digital Vibe Manufacturing Company

Income Statement

For the Month Ended March 31

1

2

3

4

Operating expenses:

5

6

7

Total operating expenses

8

b. Using the information given, determine the inventory balances at the end of the first month of operations.

Materials$

Work in process$

Finished goods$