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 $585,100 of materials
• Used $503,200 of direct materials in production
• Incurred $432,000 of direct labor wages
• Applied factory overhead at a rate of 80% of direct labor cost
• Transferred $1,229,600 of work in process to finished goods
• Sold goods with a cost of $1,152,600
• Sold goods for $2,063,200
• Incurred $495,600 of selling expenses
• Incurred $184,400 of administrative expenses

Question Content Area

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

Administrative expensesFactory overheadGross profitIncome from operationsRevenues		$- Select -
Administrative expensesCost of goods soldFactory overheadMaterialsSelling expenses		- Select -
Administrative expensesGross profitFactory overheadRevenuesWork in process		$- Select -
Selling and administrative expenses:	blank	blank
Cost of goods soldFactory OverheadFinished goodsRevenueSelling expenses	$- Select -
Administrative expensesDirect laborMaterialsRevenuesWork in process	- Select -	blank
Total selling and administrative expenses	blank	fill in the blank c59e1df4afbe065_11
Cost of Goods ManufacturedFinished goodsIncome from operationsMaterialsWork in process		$- Select -

Question Content Area

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

Materials inventory, July 31	$fill in the blank dbbf9e009044faa_1
Work in process inventory, July 31	$fill in the blank dbbf9e009044faa_2
Finished goods inventory, July 31	$fill in the blank dbbf9e009044faa_3