Answer:
Technology Treasures Manufacturing Company
a) Technology Treasures Manufacturing Company
Income Statement for the month ended January 31
Sales revenue $660,000
Cost of goods sold 367,500
Gross profit $292,500
Expenses:
Selling expense $86,200
Admin. expense 70,250 156,450
Net income $136,050
b) Ending balances of:
Materials Inventory, $45,060
Work in Process Inventory, $62,920
Finished Goods Inventory, $58,720
Explanation:
a) Data and Analysis:
a. Raw materials $138,600 Cash $138,600
b. Work in process$93,540 Raw materials $93,540
c. Work in process $182,560 Payroll expenses $182,560
d. Work in process $213,040 Factory overhead $213,040
e. Finished goods $426,220 Work in process $426,220
f. Cash $660,000 Sales revenue $660,000
g. Cost of goods sold $367,500 Finished goods $367,500
h. Selling expense $86,200 Cash $86,200
i. Administrative expense $70,250 Cash $70,250
Materials Inventory
Account Titles Debit Credit
Cash $138,600
Work in process $93,540
Ending balance 45,060
Work in Process Inventory
Account Titles Debit Credit
Raw materials $93,540
Payroll expenses 182,560
Factory overhead 213,040
Finished goods $426,220
Ending balance 62,920
Finished Goods Inventory
Account Titles Debit Credit
Work in process $426,220
Cost of goods sold $367,500
Ending balance 58,720