Hawkins Bikes, Inc. is a producer of road bikes. During July 20Y6, the company's first month of operations, the following events took place:

• Purchased $246,100 of materials.
• Used $211,600 of direct materials in production.
• Incurred $184,000 of direct labor wages.
• Applied factory overhead at a rate of 75% of direct labor cost.
• Transferred $512,300 of work in process to finished goods.
• Sold goods with a cost of $489,700.
• Sold goods for $876,600.
• Incurred $210,600 of selling expenses.
• Incurred $78,400 of administrative expenses.

Question Content Area

a.  Prepare the July income statement for Hawkins Bikes Inc. Assume that Hawkins Bikes uses the perpetual inventory method.

Hawkins Bikes Inc.
Income Statement
For the Month Ended October 31, 20Y6

Line Item Description	Amount	Amount
CashFinished goodsGross profitIncome from operationsRevenues		$- Select -
CashCost of goods soldIncome from operationsMaterialsSelling expenses		- Select -
Administrative expensesGross profitIncome from operationsRevenuesWork in process		$- Select -
Cost of goods soldFactory overheadFinished goodsMaterialsSelling expenses	$- Select -
Administrative expensesDirect laborMaterialsRevenuesWork in process	- Select -	blank
blank	blank	fill in the blank 20910cf9203700c_11
Cost of goods manufacturedFinished goodsIncome from operationsWork in processRevenues		$- Select -

Question Content Area

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

Line Item Description	Amount
Materials inventory	$fill in the blank 97c127fd8fd8fd3_1
Work in process inventory	$fill in the blank 97c127fd8fd8fd3_2
Finished goods inventory	$fill in the blank 97c127fd8fd8fd3_3