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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 materialsb. Used $67,200 of direct materials in productionc. Incurred $128,800 of direct labor wagesd. Incurred $151,200 of factory overheade. Transferred $303,800 of work in process to finished goodsf. Sold goods with a cost of $280,000g. Earned revenues of $450,000h. Incurred $65,400 of selling expensei. Incurred $54,600 of administrative expenseUsing 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.
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