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 $168,500 of materials b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 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. Labels For the Month Ended January 31 For the Year Ended January 31 January 31 Amount Descriptions Administrative expenses Cost of goods sold Gross profit Net income Revenues Selling expenses 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 B. Using the information given, determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations. Materials inventory Work in process inventory Finished goods inventory

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 $168,500 of materials b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 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. Labels For the Month Ended January 31 For the Year Ended January 31 January 31 Amount Descriptions Administrative expenses Cost of goods sold Gross profit Net income Revenues Selling expenses 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 B. Using the information given, determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations. Materials inventory Work in process inventory Finished goods inventory

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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Question

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 $168,500 of materials
	b. Used $149,250 of direct materials in production.
	c. Incurred $360,000 of direct labor wages.
	d. Incurred $120,000 of factory overhead.
	e. Transferred $600,000 of work in process to finished goods.
	f. Sold goods for $875,000.
	g. Sold goods with a cost of $525,000.
	h. Incurred $125,000 of selling expense.
	i. Incurred $80,000 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.

Labels
For the Month Ended January 31
For the Year Ended January 31
January 31
Amount Descriptions
Administrative expenses
Cost of goods sold
Gross profit
Net income
Revenues
Selling expenses

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

B. Using the information given, determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

	Materials inventory
	Work in process inventory
	Finished goods inventory

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