Financial Statements of a Manufacturing Firm
The following events took place for Air Temp Manufacturing Company during January, the first month of its operations as a producer of digital thermometers:
Purchased $47,300 of materials.
Used $36,400 of direct materials in production.
Incurred $54,400 of direct labor wages.
Incurred $76,600 of factory overhead.
Transferred $127,200 of work in process to finished goods.
Sold goods with a cost of $101,200.
Earned revenues of $227,500.
Incurred $58,200 of selling expense.
Incurred $25,500 of administrative expense.
b. Determine the inventory balances at the end of the first month of operations. (Show the transactions in T accounts for materials, work in process, and finished goods.)
Air Temp Manufacturing Company Inventory Balances
Materials=
Work in process=
Finished goods=