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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:
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:
- Purchased $51,800 of materials
- Used $39,900 of direct materials in production.
- Incurred $59,600 of direct labor wages.
- Incurred $83,900 of factory overhead.
- Transferred $139,300 of work in process to finished goods.
- Sold goods for $249,200.
- Sold goods with a cost of $110,900.
- Incurred $63,700 of selling expenses.
- Incurred $28,000 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Digital Vibe Manufacturing Company.
Digital Vibe Manufacturing Company | ||
Income Statement | ||
For 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 Company | |
Inventory Balances | |
For the Month Ended January 31 | |
Inventory balances on January 31: | |
Materials | $ |
Work in process | |
Finished goods |
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