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 $657,000 of materials
• Used $565,000 of direct materials in production
• Incurred $488,000 of direct labor wages
• Applied factory overhead at a rate of 75% of direct labor cost
• Transferred $1,362,200 of work in process to finished goods
• Sold goods with a cost of $1,314,000
• Sold goods for $2,352,100
• Incurred $565,000 of selling expenses
• Incurred $210,200 of administrative expenses

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
		$fill in the blank f520be0cb06207b_2
		fill in the blank f520be0cb06207b_4
		$fill in the blank f520be0cb06207b_6
Selling and administrative expenses:
	$fill in the blank f520be0cb06207b_8
	fill in the blank f520be0cb06207b_10
Total selling and administrative expenses		fill in the blank f520be0cb06207b_11
		$fill in the blank f520be0cb06207b_13

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

Materials inventory, July 31	$fill in the blank 68bb37088fd0049_1
Work in process inventory, July 31	$fill in the blank 68bb37088fd0049_2
Finished goods inventory, July 31	$fill in the blank 68bb37088fd0049_3