Question - The following events took place for Chaterjee Manufacturing Company during January 2014, the first month of its operations as a producer of digital thermometers:
a. Purchased $95,200 of materials
b. Used $67,200 of direct materials in production
c. Incurred $128,800 of direct labor wages
d. Incurred $151,200 of factory overhead
e. Transferred $303,800 of work in process to finished goods
f. Sold goods with a cost of $280,000
g. Earned revenues of $450,000
h. Incurred $65,400 of selling expense
i. Incurred $54,600 of administrative expense
Using the above information, complete the following:
a. Prepare the January 2014 income statement for Chaterjee Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.