Question

The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a producer of digital video monitors: Purchased $42,200 of materials. Used $32,500 of direct materials in production. Incurred $48,500 of direct labor wages. Incurred $68,400 of factory overhead. Transferred $113,500 of work in process to finished goods. Sold goods for $203,000. Sold goods with a cost of $90,300. Incurred $51,900 of selling expense. Incurred $22,800 of administrative expense.

Answer 1

Missing word "Using the information given, complete the following: a. Prepare the March income statement for Digital Vibe Manufacturing Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries."

Income statement

Particulars Amount

Sales $203,000

Less: Cost of goods sold $90,300

Gross profit $112,700

Operating expense

Selling expense $51,900

Administrative expense $22,800

Total operating expense $74,700

Operating income $38,000