Problem - 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:
a. Purchased $133,400 of materials.
b. Used $94,980 of direct materials in production.
c. Incurred $180,320 of direct labor wages.
d. Incurred $215,440 of factory overhead.
e. Transferred $425,880 of work in process to finished goods.
f. Sold goods for $645,000.
g. Sold goods with a cost of $368,750.
h. Incurred $85,120 of selling expense.
i. Incurred $71,400 of administrative expense.
Required: 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.
b. Determine the inventory balances at the end of the first month of operations.