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 $$535,000$ of materials.

Used $$460,100$ of direct materials in production.

Incurred $$396,000$ of direct labor wages.

Applied factory overhead at a rate of $75\%$ of direct labor cost.

Transferred $$1,107,000$ of work in process to finished goods.

Sold goods with a cost of $$1,054,000.$

Sold goods for $$1,886,700.$

Incurred $$453,200$ of selling expenses.

Incurred $$168,600$ 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 $30$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 $$535,000$ of materials.

Used $$460,100$ of direct materials in production.

Incurred $$396,000$ of direct labor wages.

Applied factory overhead at a rate of $75\%$ of direct labor cost.

Transferred $$1,107,000$ of work in process to finished goods.

Sold goods with a cost of $$1,054,000.$

Sold goods for $$1,886,700.$

Incurred $$453,200$ of selling expenses.

Incurred $$168,600$ 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 $30$

$

$

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