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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 9E: Financial statements of a manufacturing firm The following events took place for Sorensen...

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

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