Question - The following event took place for Gantt Manufacturing Company during March, the first month of its operations as a producer of digital clocks:
1. Purchased $65,000 of material
2. Used $50,000 of direct materials in production
3. Incurred $75,000 of direct labor wages
4. Incurred $105,000 of factory overhead
5. Transferred $175,000 of work in process to finished goods.
6. Sold goods with a cost of $140,000
7. Earned revenues of $310,000
8. Incurred $80,000 of selling expenses
9. Incurred $35,000 of administrative expenses
Required -
1. Prepare the March income statement for Grantt Manufacturing Company.
2. Determine the inventory balances at the end of the first month of operations.