Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of
Financial Statements of a Manufacturing Firm
The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes:
Purchased $438,100 of materials. | |
Used $376,800 of direct materials in production. | |
Incurred $324,000 of direct labor wages. | |
Applied factory overhead at a rate of 75% of direct labor cost. | |
Transferred $906,000 of work in process to finished goods. | |
Sold goods with a cost of $863,100. | |
Sold goods for $1,544,900. | |
Incurred $371,100 of selling expenses. | |
Incurred $138,100 of administrative expenses. |
a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method.
Chi-Lite Inc. | ||
Income Statement | ||
For the Month Ended June 30 | ||
$ | ||
$ | ||
Selling and Administrative Expenses: | ||
$ | ||
Total Selling and Administrative Expenses | ||
$ |
b. Determine the inventory balances at the end of the first month of operations.
Materials inventory, June 30 | $ |
Work in process inventory, June 30 | $ |
Finished goods inventory, June 30 | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started