Financial Statements of a Manufacturing Firm Assignment | Top Universities
January 30th, 2020
Financial Statements of a Manufacturing Firm
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 $63,000 of materials
- Used $48,500 of direct materials in production.
- Incurred $72,500 of direct labor wages.
- Incurred $102,100 of factory overhead.
- Transferred $169,500 of work in process to finished goods.
- Sold goods for $303,000.
- Sold goods with a cost of $134,800.
- Incurred $77,500 of selling expenses.
- Incurred $34,000 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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