what is finished goods and costs of goods sold? cannot figure it out! what is the equation?

Calculating the Cost of Jobs, Making Journal Entries, and Preparing an Income Statement. Racing Bikes, produces custom bicycles for professional racers. Each bike is built to customer specifications. During Ji its first month of operations, Racing Bikes began production of four customer orders-jobs 1 through 4. following transactions occurred during July. 1. Purchased bike parts totaling $14,400 2. Processed material requisitions for the following items: 3 Job 1, direct materials Job 2, direct materials Job 3, direct materials Job 4, direct materials Indirect materials Total $ 2,800 1250 1.550 780 1.075 5 7.455 3. Processed timesheets showing the following: Job 1, direct labor 0 hours) Job 2, direct labor 25 hours) Job 3. direct labor 28 hours) Job 4, direct labor (15 hours) Indirect labor Total 5500 430 465 210 52590 On 3. Processed timesheets showing the following: 500 430 465 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 210 985 $ 2.590 30 PDOH Job: 2 3 4 DLH 30 25 28 15 4. Applied overhead using a predetermined rate of $30 per direct labor hour 5. Completed and transferred to finished goods jobs 1, 2, and 3 6. Delivered jobs 1 and 2 to customers, billing them $6,000 for job 1 and $3,500 for job 2 (Hint: Two entries are required-one for the cost of the goods and another for the revenue.) Required: 1. Calculate the production costs incurred in July for each of the four jobs. 2. Make the appropriate journal entry for each transaction described previously (Ithrough 6). Assume all 5 payments will be made next month. 6 3. How much gross profit did Racing Bikes, Inc., earn from the sale of job 2? 2.23 2.24 2.26 2.32 2.38 2.34 3.31 3.32 3.41 3.46 -11AA A ont Wrap Text Merge & Center - General $ % E EE EEE , *99 Conditional Format as Cell Formatting Table Styles Styles Alignment Number LCD E F G 12 13 Required: 14 1. Calculate the production costs incurred in July for each of the four jobs. 2. Make the appropriate journal entry for each transaction described previously (Ithrough 6). Assume all 15 payments will be made next month. 16 3. How much gross profit did Racing Bikes, Inc., earn from the sale of job 2? 4. Assume selling costs totaled $1,000 and that general and administrative costs totaled $2,200. Prepare an income statement for Racing Bikes for the month of July. (Assume there is no adjustment to cost of goods sold for underapplied or overapplied overhead.) Direct Materials Direct Labor Overhead Applied Total Cost of job 2,800 500 900 4,200 Job 2 1,250 430 750 2,430 3 1,550 465 840 2,855 4 780 2 10 4 50 1,440 24 I 25 27 July 14,400 Raw Materials Accounts Payable 2.23 2.24 2.26 2.32 14,400 3.32 2.38 2.34 3.31 3.41 3.46 July Work in Process Manufacturing Overhead Raw Materials 1,075 July Work in Process Manufacturing Overhead Wages Payable 2,590 2.940 Work in Process Manufacturing Overhead 2,940 July Finished Goods Work in Process July Scan Cost of Goods Sold Finished Goods 9,500 Accounts Receivable Sales Revenue 9,500 #3 Job 2: Sales Revenue 2.23 2.24 3,500 1 ... 2.26 2.32 2.38 2.34 3.31 3.32 3.41 3.46 Doa e