Answer:
Digital Vibe Manufacturing Company
March Income Statement
Sales $1224000
Purchases $255,000
Less<u> Ending Inventory Materials $71,400</u>
Direct Materials Used in Production $183,600
Direct Labor Wages $459,000
<u>Factory Overhead $183,600</u>
Total Manufacturing Costs $ 826,200
<u>Less </u><u>Work In Process Ending Inventory $51,000</u>
<u />
Finished Goods $775200
<u>Less </u><u>F. G ending Inventory $ 86,700</u>
Cost of Goods Sold <u> $ 688,500 </u>
Gross Profit <u> $535500</u>
Less Selling Expenses $219300
Less Administrative Expenses <u> $127500</u>
<u>Net Profit</u><u> </u><u> $188700 </u>
<u />
<u>b.Ending Inventory Materials $71,400= </u>Material Purchased- Material used
=$255,00- $ 183,600= $71,400
<u />
<u>Work In Process Ending Inventory $51,000</u>
Total Manufacturing Costs Less Transferred to Finished Goods=
$ 826,200 - $775200=<u> $51,000</u>
<u> </u><u>F. G ending Inventory $ 86,700</u>
= Transferred to Finished Goods Less Cost of Goods Sold = $775200- <u> </u>$ 688,500 =<u> $ 86,700</u>