Question

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Instructions Amount Descriptions 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: Amount Descriptions Administrative expenses a. Purchased $137,800 of materials. Cost of goods sold Gross profit Net income 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. Revenues Selling expenses Income Statement g. Sold goods with a cost of $365,000. h. Incurred $86,260 of selling expense. i. Incurred $71,950 of administrative expense. a. Using the information given, prepare the March income statement for Digital Vibe Manufacturing Company Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Required: Using the information given, complete the following: a. Prepare the March income statement for Digital Vibe Manufacturing Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Digital Vibe Manufacturing Company Income Statement b. Determine the inventory balances at the end of the first month of operations For the Month Ended March 31 Inventory Balances b. Using the information given, determine the inventory balances at the end of the first month of operations. Operating expenses: Materials $ Work in process $ Finished goods $ Total operating expenses

Answer 1

Prepare the March Income statement: Amt Amt $ 645.000 S 365.000 $ 280,000 Description Revenues Cost of goods sold Gross Profit Operating Expenses: Selling expenses Administrative Expenses Total operating expenses Net Income $ $ 86.260 71.950 $ 158.210 $ 121,790 Workings: Description Amt Purchases $ 137.800 Less: Direct material used $ 94.100 Ending inventory (Materials) S 43,700 Description Amt Direct material used $ 94,100 Direct labor $ 184.800 Prime cost $ 278.900 Add: Factory overheads $ 212,720 Cost of goods manufactured S 491,620 Less: Cost of goods transferred S 423,160 Ending Work in process $ 68,460 Description Amt Cost of goods transferred | $ 423,160 Less: Cost of goods sold(Given) S 365,000 Ending Finished goods $ 58,160

b) Determine the inventory balances at the end of the month: Ending inventory (Materials) Ending Work in Process Ending Finished goods $ 43,700 $ 68,460 $ 58,160