assey Corporation purchased a piece of land for $50,000. Massey paid attorney's fees of $5,000 and brokers' commissions of $4,00
1 answer:
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Answer:
Please see answer below
Explanation:
A. The income statement for Digital Vibe.
Before preparing the income statement, we have to first prepare the net profit or net loss.
= Sales - Cost of goods sold - selling expenses - Administrative expenses
= $875,000 - $525,000 - $125,000 - $80,000
= $145,000
B. Determine the materials inventory, work in process inventory, and finished goods inventory.
Direct materials = Purchase material - Used material
= $168,500 - $149,250
= $19,250.
Work in process inventory = Used material + direct labor wages + Factory overhead - transferred unit
= $149,250 + $360,000 + $120,000 - $600,000
= $29,250
Finished goods = Transferred units - Cost of goods sold
= $600,000 - $525,000
= $75,000
• Please find attached prepared income statement for question 1.
