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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
Financial statements of a manufacturing firm
The following events took place for Video Wave Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors:
a. Purchased $133,200 of materials.
b. Used $94,080 of direct materials in production.
c. Incurred $180,320 of direct labor wages.
d. Incurred $211,680 of factory overhead.
e. Transferred $425,320 of work in process to finished goods.
f. Sold goods with a cost of $365,000.
g. Earned revenues of $652,000.
h. Incurred $86,520 of selling expense.
i. Incurred $71,250 of administrative expense.
Using the information given, complete the following:
a. Prepare the January 2016 income statement for Video Wave Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.
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