Reference no: EM131793031

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.