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Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer
Financial Statements of a Manufacturing Firm
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:
Purchased $393,500 of materials. | |
Used $338,400 of direct materials in production. | |
Incurred $292,000 of direct labor wages. | |
Applied factory overhead at a rate of 75% of direct labor cost. | |
Transferred $815,400 of work in process to finished goods. | |
Sold goods with a cost of $775,200. | |
Revenues earned by selling bikes, $1,387,600. | |
Incurred $333,300 of selling expenses. | |
Incurred $124,000 of administrative expenses. |
a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method.
Rushmore Biking Inc. | ||
Income Statement | ||
For the Month Ended February 28 | ||
$fill in the blank 5ffc2e0d2f8100d_2 | ||
fill in the blank 5ffc2e0d2f8100d_4 | ||
$fill in the blank 5ffc2e0d2f8100d_6 | ||
Selling and administrative expenses: | ||
$fill in the blank 5ffc2e0d2f8100d_8 | ||
fill in the blank 5ffc2e0d2f8100d_10 | ||
Total selling and administrative expenses | fill in the blank 5ffc2e0d2f8100d_11 | |
$fill in the blank 5ffc2e0d2f8100d_13 |
b. Determine the inventory balances on February 28, the end of the first month of operations.
Materials inventory, February 28 | $fill in the blank d3c30b0f5011f9c_1 |
Work in process inventory, February 28 | $fill in the blank d3c30b0f5011f9c_2 |
Finished goods inventory, February 28 | $fill in the blank d3c30b0f5011f9c_3 |
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