Reference no: EM132001298

Question - The following events took place for Chaterjee Manufacturing Company during January 2014, the first month of its operations as a producer of digital thermometers:

a. Purchased $95,200 of materials

b. Used $67,200 of direct materials in production

c. Incurred $128,800 of direct labor wages

d. Incurred $151,200 of factory overhead

e. Transferred $303,800 of work in process to finished goods

f. Sold goods with a cost of $280,000

g. Earned revenues of $450,000

h. Incurred $65,400 of selling expense

i. Incurred $54,600 of administrative expense

Using the above information, complete the following:

a. Prepare the January 2014 income statement for Chaterjee Manufacturing Company.

b. Determine the inventory balances at the end of the first month of operations.