Financial Statements of a Manufacturing Firm

The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes:

• Purchased $424,600 of materials
• Used $365,200 of direct materials in production
• Incurred $316,000 of direct labor wages
• Applied factory overhead at a rate of 70% of direct labor cost
• Transferred $866,300 of work in process to finished goods
• Sold goods with a cost of $849,200
• Sold goods for $1,520,100
• Incurred $365,200 of selling expenses
• Incurred $135,900 of administrative expenses

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

Focault Inc. Income Statement For the Month Ended July 31, 20Y2

Cost of goods soldFactory overheadFinished goodsGross profitIncome from operationsRevenues		$- Select -
Cost of goods soldFactory overheadIncome from operationsMaterialsRevenuesSelling expenses		- Select -
Administrative expensesFactory overheadGross profitIncome from operationsRevenuesWork in process		$- Select -
Selling and administrative expenses:
Cost of goods soldFactory OverheadFinished goodsMaterialsRevenueSelling expenses	$- Select -
Administrative expensesDirect laborMaterialsRevenuesWork in process	- Select -
Total selling and administrative expenses		fill in the blank e8fc70061047016_11
Cost of Goods ManufacturedFinished goodsIncome from operationsMaterialsWork in process		$- Select -

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

Materials inventory, July 31	$fill in the blank c1dfcfff5008fa2_1
Work in process inventory, July 31	$fill in the blank c1dfcfff5008fa2_2
Finished goods inventory, July 31	$fill in the blank c1dfcfff5008fa2_3