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 $68,000 of materials.
- Used $48,000 of direct materials in production.
- Incurred $92,000 of direct labor wages.
- Incurred $108,000 of factory overhead.
- Transferred $217,000 of work in process to finished goods.
- Sold goods with a cost of $170,000.
- Earned revenues of $325,000.
- Incurred $80,000 of selling expense.
- Incurred $39,000 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=