Financial statements of a manufacturing firm

Instructions

Labels and Amount Descriptions

Income Statement

Inventory Balances

X

Instructions

The following events took place for Chi-Lite Inc. during June 2016, the first month of operations as a producer of road bikes:

	Purchased $396,010 of materials.
	Used $340,050 of direct materials in production.
	Incurred $294,400 of direct labor wages.
	Applied factory overhead at a rate of 76% of direct labor cost.
	Transferred $812,120 of work in process to finished goods.
	Sold goods with a cost of $791,220.
	Sold goods for $1,404,390.
	Incurred $316,650 of selling expenses.
	Incurred $126,730 of administrative expenses.