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The following events took place for Air Temp Manufacturing Company during January, the first month of its operations as a producer of digital thermometers:
a. Purchased $68,000 of materials.b. Used $48,000 of direct materials in production. c. Incurred $92,000 of direct labor wages. d. Incurred $108,000 of factory overhead. e. Transferred $217,000 of work in process to finished goods. f. Sold goods with a cost of $170,000.g. Earned revenues of $325,000.h. Incurred $80,000 of selling expense. i. Incurred $39,000 of administrative expense.
Using the above information, complete the following:
a. Prepare the January income statement for Air Temp Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.
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