he following events took place for Digital Vibe Manufact . Purchased $48,900 of materials . Used $37,700 of direct materials in production. . Incurred $56,200 of direct labor wages. 1. Incurred $79,200 of factory overhead. . Transferred $131,500 of work in process to finished g . Sold goods for $235,200. Sold goods with a cost of $104,600. . Incurred $60,100 of selling expenses. 1. Incurred $26,400 of administrative expense. sing the information given, complete the following:
he following events took place for Digital Vibe Manufact . Purchased $48,900 of materials . Used $37,700 of direct materials in production. . Incurred $56,200 of direct labor wages. 1. Incurred $79,200 of factory overhead. . Transferred $131,500 of work in process to finished g . Sold goods for $235,200. Sold goods with a cost of $104,600. . Incurred $60,100 of selling expenses. 1. Incurred $26,400 of administrative expense. sing the information given, complete the following:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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:
a. Purchased $48,900 of materials
b. Used $37,700 of direct materials in production.
c. Incurred $55,200 of direct labor wages.
d. Incurred $79,200 of factory overhead.
e. Transferred $131,500 of work in process to finished goods.
f. Sold goods for $235,200.
g. Sold goods with a cost of $104,600.
h. Incurred $60,100 of selling expenses.
i. Incurred $26,400 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
Revenues
✓
Cost of goods sold
Gross profit
Operating expenses:
Selling expenses
✓
Administrative expenses
Total operating expenses
Net income
8
000
Transcribed Image Text: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
000
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