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The following events took place for LAE Manufacturing Company during March, the first month of its operations as a producer of digital clocks:
a. Purchased $52,000 of materials.b. Used $40,000 of direct materials in production.c. Incurred $60,000 of direct labor wages.d. Incurred $84,000 of factory overhead.e. Transferred $140,000 of work in process to finished goods.f. Sold goods with a cost of $110,000.g. Earned revenues of $250,000.h. Incurred $64,000 of selling expenses.i. Incurred $28,000 of administrative expenses.
a. Prepare the March income statement for LAE Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.
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