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 $44,800 of materials Used $34,500 of direct materials in production. Incurred $51,500 of direct labor wages. Incurred $72,600 of factory overhead. Transferred $120,500 of work in process to finished goods. Sold goods for $215,500. Sold goods with a cost of $95,900. Incurred $55,100 of selling expenses. Incurred $24,200 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     $fill in the blank 0fbb4f085fb604d_2     fill in the blank 0fbb4f085fb604d_4     $fill in the blank 0fbb4f085fb604d_6 Operating expenses:       $fill in the blank 0fbb4f085fb604d_8     fill in the blank 0fbb4f085fb604d_10   Total operating expenses   fill in the blank 0fbb4f085fb604d_11     $fill in the blank 0fbb4f085fb604d_13 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. 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:

    1. Purchased $44,800 of materials
    2. Used $34,500 of direct materials in production.
    3. Incurred $51,500 of direct labor wages.
    4. Incurred $72,600 of factory overhead.
    5. Transferred $120,500 of work in process to finished goods.
    6. Sold goods for $215,500.
    7. Sold goods with a cost of $95,900.
    8. Incurred $55,100 of selling expenses.
    9. Incurred $24,200 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
        $fill in the blank 0fbb4f085fb604d_2
        fill in the blank 0fbb4f085fb604d_4
        $fill in the blank 0fbb4f085fb604d_6
    Operating expenses:    
      $fill in the blank 0fbb4f085fb604d_8  
      fill in the blank 0fbb4f085fb604d_10  
    Total operating expenses   fill in the blank 0fbb4f085fb604d_11
        $fill in the blank 0fbb4f085fb604d_13

    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 $fill in the blank 2fd185fa301e029_1
    Work in process fill in the blank 2fd185fa301e029_2
    Finished goods fill in the blank 2fd185fa301e029_3
  2.  
 
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