The following events took place for LAE Manufacturing Company during March, the first month of its operations as a producer of digital clocks:
a. Purchased $52,000 of materials.
b. Used $40,000 of direct materials in production.
c. Incurred $60,000 of direct labor wages.
d. Incurred $84,000 of factory overhead.
e. Transferred $140,000 of work in process to finished goods.
f. Sold goods with a cost of $110,000.
g. Earned revenues of $250,000.
h. Incurred $64,000 of selling expenses.
i. Incurred $28,000 of administrative expenses.
a. Prepare the March income statement for LAE Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.