Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Racing Bikes, Inc., produces custom bicycles for professional racers. Each bike is built to customer specifications. During July, its first month of operations, Racing Bikes

image text in transcribed
Racing Bikes, Inc., produces custom bicycles for professional racers. Each bike is built to customer specifications. During July, its first month of operations, Racing Bikes began production of four customer orders-jobs 1 through 4. The following transactions occurred during July. Purchased bike parts totalling $14,400 Processed material requisitions for the following items: Job 1, direct materials Job 2, direct materials Job 3, direct materials Job 4, direct materials Indirect materials Total 5 2.800 1.250 1.550 780 1,075 57,455 Processed timesheets showing the following: Job 1, direct labor (30 hours) Job 2 direct labor (25 hours) Job 3, direct labor (28 hours) Job 4, direct labor (15 hours) Indirect labor Total $ 500 430 465 ZIO 985 $ 2590 Applied overhead using a predetermined rate of $30 per direct labour hour Completed and transferred to finished goods jobs 1, 2, and 3 Delivered jobs 1 and 2 to customers, billing them $6,000 for job 1 and $3,500 (a) Calculate the production costs incurred in July for each of the four jobs (b) Make the appropriate journal entry for each transaction described previously. Assume all payments will be made next month. (c) How much gross profit did Racing Bikes, Inc., earn from the sale of job 2? c

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Philip E. Fess

20th Edition

0324025424, 978-0324025422

More Books

Students also viewed these Accounting questions