The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes:

• Purchased $497,900 of materials
• Used $428,200 of direct materials in production
• Incurred $368,000 of direct labor wages
• Applied factory overhead at a rate of 75% of direct labor cost
• Transferred $1,029,300 of work in process to finished goods
• Sold goods with a cost of $990,800
• Sold goods for $1,773,500
• Incurred $426,000 of selling expenses
• Incurred $158,500 of administrative expenses

Question Content Area

a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method.

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 8a3af20b0ff0009_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 94f6e7ff7000fa1_1
Work in process inventory, July 31	$fill in the blank 94f6e7ff7000fa1_2
Finished goods inventory, July 31	$fill in the blank 94f6e7ff7000fa1_3