Financial Statements of a Manufacturing Firm

The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes:

Purchased $213,800 of materials.

Used $183,900 of direct materials in production

Incurred $160,000 of direct labor wages

Applied factory overhead at a rate of 80% of direct labor cost

Transferred $453,000 of work in process to finished goods

Sold goods with a cost of $421,200

Sold goods for $753,900

Incurred $181,100 of selling expenses

Incurred $67,400 of administrative expenses

Question Content Area

a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method.

Migliozzi Inc. Income Statement For the Month Ended July 31

Administrative expensesFactory overheadGross profitIncome from operationsRevenues	$	$
Administrative expensesCost of goods soldFactory overheadMaterialsSelling expenses
Administrative expensesGross profitFactory overheadRevenuesWork in process
Selling and administrative expenses:	blank
Cost of goods soldFactory OverheadFinished goodsRevenueSelling expenses	$- Select -
Administrative expensesDirect laborMaterialsRevenuesWork in process	- Select -
Total selling and administrative expenses	blank
Cost of Goods ManufacturedFinished good income from operationsMaterialsWork in process

Question Content Area

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

Materials inventory, July 31	$fill in the blank
Work in process inventory, July 31	$fill in the blank
Finished goods inventory, July 31	$fill in the blank