Question

The following information is available for Bandera Manufacturing Company for the month ending January 31: 

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: 

a. Purchased $48,300 of materials

 b. Used $37,200 of direct materials production. 

c. Incurred $55,500 of direct labor wages. 

d. Incurred $78,200 of factory overhead. process to finished goods. 

e. Transferred $129,900 of work 

f. Sold goods for $232,300. 

g. Sold goods with a cost of $103,400. 

h. Incurred $59,400 of selling expenses 

 i. Incurred $26,100 of administrative expense.

Answer 1

1)
a)
Bandera Manufacturing Company
Cost of Goods Sold
Jan-31
Finished Goods Inventory, January 1	73590
Add: Cost of Goods Manufactured	306090
Total Goods Available for Sales	379680
Less: Finished Goods Inventory, January 31	67080
Cost of Goods Sold	312600

b)
Bandera Manufacturing Company
Gross Profit
Jan-31
Sales	651250
Less: Cost of Goods Sold	312600
Gross Profit	338650

c)
Bandera Manufacturing Company
Net Income
Jan-31
Gross Profit		338650
Operating Expenses:
Selling expenses	102250
Administrative expenses	54050
Less: Total Operating Expense		156300
Net Income		182350

2)
a)
Digital Vibe Manufacturing Company
Income Statement
For the Month Ended January 31
Sales		232300
Less: Cost of goods sold		103400
Gross profit		128900
Less: Operating expense
Selling expense	59400
Administrative expense	26100
Total operating expense		85500
Net income		43400

b)
Particulars	Amount ($)
Materials purchased	48300
Less: Materials used for production	37200
Ending balance of materials	11100
Particulars	Amount ($)
Materials used for production	37200
Add: Direct labor wages	55500
Add: Factory overhead	78200
Total cost of manufacturing	170900
Less: Transferred to finished goods	129900
Ending balance of work-in-process	41000
Particulars	Amount ($)
Transfer from work-in-process	129900
Less: Cost of goods sold	103400
Ending balance of finished goods	26500