The following events took place for Digital Vibe Manufacturing Company during Ma
ID: 2392954 • Letter: T
Question
The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a producer of digital video monitors:
b. Determine the inventory balances at the end of the first month of operations.
Digital Vibe Manufacturing Company
Income Statement
For the Month Ended March 31
1
2
3
4
.Operating expenses:
5
6
7.
Total operating expenses
8
b. Using the information given, determine the inventory balances at the end of the first month of operations.
a. Purchased $137,800 of materials. b. Used $94,100 of direct materials in production. c. Incurred $184,800 of direct labor wages. d. Incurred $212,720 of factory overhead. e. Transferred $423,160 of work in process to finished goods. f. Sold goods for $645,000. g. Sold goods with a cost of $365,000. h. Incurred $86,260 of selling expense. i. Incurred $71,950 of administrative expense.Explanation / Answer
a) Income statement :
b) Using the information given, determine the inventory balances at the end of the first month of operations.
Sales 645000 Less: Cost of goods sold 365000 Gross profit 280000 Operating expense Selling expense 86260 Administrative expense 71950 Total operating expense 158210 Net operating income 121790