Chi-Lite Inc. | ||
Income Statement | ||
For the Month Ended June 30 | ||
Revenues | $1,408,500 | |
Cost of goods sold | $793,800 | |
Gross Profit [$1,408,500 - $793,800] | $614,700 | |
Selling and Administrative Expenses | ||
Selling expenses | $317,900 | |
Administration expenses | $125,700 | |
tTotal Selling and Administrative Expenses [$317,900 + $125,700] | $443,600 | |
Income from Operations [$614,700 - $443,600] | $171,100 |
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b. Inventory balances: | |
Materials inventory, June 30 [Purchased - Used = $470,000 - $403,900] | $66,100 |
Work-in Process inventory, June 30 [Refer working note 1] | $52,460 |
Finished Goods inventory, June 30 [Refer working note 2] | $156,200 |
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Working note 1 -Calculation of Work-in Process inventory balance at June 30 | ||
Beginining balance of Work-in-process | $0 | |
Direct material used | $403,900 | |
Add: Direct labor wages | $348,000 | |
Add: Factory overhead [Direct labor wages x 72% = $348,000 x 72%] | $250,560 | |
Total manufacturing cost | $1,002,460 | |
Total cost of work-in-process [$0 + $1,002,460] | $1,002,460 | |
Less: Cost of Work-in-process transferred to finished goods inventory (Cost of goods manufactured) | $950,000 | |
Ending balance of Work-in-Process Inventory | $52,460 |
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Working note 2 - Calculation of Finshed goods inventory balance at June 30 | |
Beginning balance of finished goods inventory | $0 |
Add: Cost of Work-in-process transferred to finished goods inventory (Cost of goods manufactured) | $950,000 |
Cost of goods available for sale [$0 + $950,000] | $950,000 |
Less: Finished goods sold [Cost of Goods Sold] | $793,800 |
Ending balance of Finished goods Inventory | $156,200 |
Financial statements of a manufacturing firm The following events took place for Chi-Lite Inc. during June,...
Financial statements of a manufacturing firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $470,000 of materials. Used $403,900 of direct materials in production. • Incurred $348,000 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. • Transferred $963,200 of work in process to finished goods. • Sold goods with a cost of $759,600. Sold goods for $1,347,800....
Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $328,200 of materials. • Used $282,300 of direct materials in production. • Incurred $244,000 of direct labor wages. • Applied factory overhead at a rate of 75% of direct labor cost. • Transferred $680,900 of work in process to finished goods. • Sold goods with a cost of $649,800. • Sold...
Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $589,600 of materials. lessed $507,100 of direct materials in production. • Incurred $436,000 of direct labor wages. • Applied factory overhead at a rate of 70% of direct labor cost. • Transferred $1,198,400 of work in process to finished goods. • Sold goods with a cost of $1,167,400. • Sold goods...
Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $438,100 of materials. • Used $376,800 of direct materials in production. • Incurred $324,000 of direct labor wages. • Applied factory overhead at a rate of 75% of direct labor cost. • Transferred $906,000 of work in process to finished goods. • Sold goods with a cost of $863,100. • Sold...
Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $400,000 of materials. • Used $343,750 of direct materials in production. • Incurred $295,000 of direct labor wages. • Applied factory overhead at a rate of 75% of direct labor cost. • Transferred $815,000 of work in process to finished goods. • Sold goods with a cost of $789,000. • Sold...
The following events took place for Chi-Lite Inc. during June 2016, the first month of operations as a producer of road bikes: • Purchased $396,730 of materials. • Used $343,310 of direct materials in production. • Incurred $294,600 of direct labor wages. • Applied factory overhead at a rate of 74% of direct labor cost. • Transferred $816,250 of work in process to finished goods. • Sold goods with a cost of $797,470. • Sold goods for $1,409,300. • Incurred...
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EX 16-14 Financial statements of a manufacturing fim the following events took place for Chi-Lite Inc. during June, the first month of operatiens 0,000 ucer of road bikes: Purchased s400.0 of matenials . Used $343,750 of direct materials in production. . Incurred $295,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. . Transferred $815,000 of work in process to finished goods. . Sold goods with a cost of $789,000. . Sold goods...