=+El 0-19 Financial statements ofa manufacturing firm Obj 4 SPREADSHEET y

a. Income from operations, $47,600 The following events took place for Wreckin Ronnie Inc. during July 2008, the first month of operations, as a producer ofroad bikes:

• Purchased $ 165,800 ofmaterials.

• Used $147,600 of direct materials in production.

• Incurred $96,250 of direct labor wages.

• Applied factory overhead at a rate of 80% of direct labor cost.

• Transferred $302,900 ofwork in process to finished goods.

• Sold goods with a cost of $301,300.

• Sold goods for $520,000.

• Incurred $119,000 ofselling expenses.

• Incurred $52,100 of administrative expenses.

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