a. Purchased $138,600 of materials. b. Used $93,540 of direct materials in production. c. Incurred $182,560 of direct labor wages. d. Incurred $213,040 of factory overhead. e. Transferred $426,220 of work in process to finished goods.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
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Wv2 | Online teachin X +
takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession
Locator=&inprogress... A
The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations as a produ
digital video monitors:
a. Purchased $138,600 of materials.
b. Used $93,540 of direct materials in production.
c. Incurred $182,560 of direct labor wages.
d. Incurred $213,040 of factory overhead.
e. Transferred $426,220 of work in process to finished goods.
f. Sold goods for $660,000.
g. Sold goods with a cost of $367,500.
h. Incurred $86,200 of selling expense.
i. Incurred $70,250 of administrative expense.
Required:
Using the information given, complete the following:
a. Prepare the January income statement for Technology Treasures Manufacturing Company. Be sure to complete the statement
heading. Refer to the lists of Accounts, Labels and Amount Descriptions list provided for the exact wording of the answer choices for text
entries. Colons (:) will fill in where needed. Enter amounts as positive numbers unless the amount is a calculation that results in a
negative amount. For example: Net loss should be negative. Expenses should be positive.
b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of
operations.
Previous
Nex
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Transcribed Image Text:Wv2 | Online teachin X + takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations as a produ digital video monitors: a. Purchased $138,600 of materials. b. Used $93,540 of direct materials in production. c. Incurred $182,560 of direct labor wages. d. Incurred $213,040 of factory overhead. e. Transferred $426,220 of work in process to finished goods. f. Sold goods for $660,000. g. Sold goods with a cost of $367,500. h. Incurred $86,200 of selling expense. i. Incurred $70,250 of administrative expense. Required: Using the information given, complete the following: a. Prepare the January income statement for Technology Treasures Manufacturing Company. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations. Previous Nex - ▬▬
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