Instructions The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $396,010 of materials. Used $340,050 of direct materials in production. Incurred $294,400 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. Transferred $812,120 of work in process to finished goods. Sold goods with a cost of $791,220. Sold goods for $1,404,390. Incurred $316,650 of selling expenses. Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons () will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. XLabels and Amount Descriptions Labels For the Month Ended June 30 June 30 Selling and administrative expenses Amount Descriptions Administrative expenses Cost of goods sold Factory overhead Gross profit Income from operations Materials Revenues Selling expenses Total selling and administrative expenses Income Statement a. Prepare the June income statement for Chi-Lite Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons () will fill in where needed. Inventory Balances b. Determine the inventory balances at the end of the first month of operations. 1 2 3 4 (Label) 5 99 6 7 8 Chi-Lite Inc. Income Statement (Label) Materials inventory, June 30 $ Work in process inventory, June 30 $ Finished goods inventory, June 30 Instructions Munson Co. uses a job order cost system. The following data summarize the operations related to production for July: Chart of Accounts July 1 Materials purchased on account, $644,380. 2 Materials requisitioned, $670,250, of which $71,770 was for general factory use. 33 31 Factory labor used, S637,900, of which $88,640 was indirect. 31 Other costs incurred on account for factory overhead, $142,060; selling expenses, $238,560; and administrative expenses, $151,300. 31 Prepaid expenses expired for factory overhead were $29,450; for selling expenses, $27,540; and for administrative expenses, $18,720. 31 Depreciation of office building was $84,480; of office equipment, $43,730, and of factory equipment, $32,270. 31 Factory overhead costs applied to jobs, $379,790. 31 Jobs completed, $988,380. 31 Cost of goods sold, $921,340 Required: Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles. ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods. 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Office Building 191 Office Equipment CHART OF ACCOUNTS Munson Co. General Ledger 192 Accumulated Depreciation-Buildings and Equipment REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Office Building 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary