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 $137,200 of materials. b. Used $94,320 of direct materials in production. c. Incurred $180,640 of direct labor wages. d. Incurred $212,320 of factory overhead. e. Transferred $427,800 of work in process to finished goods. f. Sold goods for $655,000. g. Sold goods with a cost of $360,250. h. Incurred $86,160 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 Digital Vibe Manufacturing Company. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. B. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations. A. Using the information given, prepare the January income statement for Digital Vibe Manufacturing Company. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Digital Vibe Manufacturing Company Income Statement 1 2 3 4 Operating expenses: 5 6 7 Total operating expenses 8

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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:

	a. Purchased $137,200 of materials.
	b. Used $94,320 of direct materials in production.
	c. Incurred $180,640 of direct labor wages.
	d. Incurred $212,320 of factory overhead.
	e. Transferred $427,800 of work in process to finished goods.
	f. Sold goods for $655,000.
	g. Sold goods with a cost of $360,250.
	h. Incurred $86,160 of selling expense.
	i. Incurred $70,250 of administrative expense.

Required:

Using the information given, complete the following:

Prepare the January income statement for Digital Vibe Manufacturing Company. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

A. Using the information given, prepare the January income statement for Digital Vibe Manufacturing Company. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Digital Vibe Manufacturing Company

Income Statement

1
2
3
4	Operating expenses:
5
6
7	Total operating expenses
8

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