Solution
Rushmore Biking Inc. | ||
Income Statement | ||
For the Month Ended February 28 | ||
Revenues | $ 740,900 | |
Cost of Goods Sold | $ 447,800 | |
Gross Profit | $ 293,100 | |
Selling and Administrative Expenses: | ||
Selling Expenses | $ 150,600 | |
Administrative Expenses | $ 73,300 | |
Total Selling and Administrative Expenses | $ 223,900 | |
Operating Income | $ 69,200 |
.
a. Materials inventory, February 28 | $ 37,000 |
Work in process inventory, February 28 | $ 25,656 |
Finished goods inventory, February 28 | $ 22,800 |
Working
Working | ||
a. Materials inventory, February 28 | $ 37,000 | (390000-353000) |
Work in process inventory, February 28 | $ 25,656 | |
Finished goods inventory, February 28 | $ 22,800 | (470600-447800) |
.
Direct material | $ 353,000 |
Direct labor | $ 101,600 |
Overhead applied | $ 41,656 |
Total manufacturing cost | $ 496,256 |
Less: Cost of goods manufactured | $ 470,600 |
Ending work in process inventory | $ 25,656 |
Financial statements of a manufacturing firm The following events took place for Rushmore Biking Inc. during...
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased $390,000 of materials. Used $353,000 of direct materials in production. Incurred $101,600 of direct labor wages. Applied factory overhead at a rate of 41% of direct labor cost. Transferred $470,600 of work in process to finished goods. Sold goods with a cost of $447,800. Revenues earned by selling bikes, $740,900. Incurred $150,600 of selling expenses. Incurred $73,300...
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $480,000 of materials. • Used $434,500 of direct materials in production. • Incurred $125,000 of direct labor wages. • Applied factory overhead at a rate of 40% of direct labor cost. • Transferred $578,000 of work in process to finished goods. • Sold goods with a cost of $550,000. •...
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $385,900 of materials. • Used $331,900 of direct materials in production. • Incurred $284,000 of direct labor wages. • Applied factory overhead at a rate of 80% of direct labor cost. • Transferred $809,400 of work in process to finished goods. • Sold goods with a cost of $771,800. •...
Financial statements of a manufacturing firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $450,000 of materials. • Used $407,300 of direct materials in production. • Incurred $117,200 of direct labor wages. • Applied factory overhead at a rate of 47% of direct labor cost. • Transferred $549,600 of work in process to finished goods. Sold goods with a cost of $523,000. • Revenues...
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: - Purchased $581,100 of materials. • Used $499,700 of direct materials in production. • Incurred $432,000 of direct labor wages. • Applied factory overhead at a rate of 75% of direct labor cost. - Transferred $1,205,500 of work in process to finished goods. • Sold goods with a cost of $1,156,400. •...
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc, during February, the first month of operations as a producer of road bikes: • Purchased $483,800 of materials. • Used $416,100 of direct materials in production. • Incurred $360,000 of direct labor wages. • Applied factory overhead at a rate of 70% of direct labor cost. • Transferred $987,000 of work in process to finished goods. • Sold goods with a cost of $967,600. •...
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $365,100 of materials. • Used $314,200 of direct materials in production. • Incurred $272,000 of direct labor wages. • Applied factory overhead at a rate of 75% of direct labor cost. • Transferred $758,600 of work in process to finished goods. • Sold goods with a cost of $723,500. •...
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $354,000 of materials. • Used $304,400 of direct materials in production. • Incurred $260,000 of direct labor wages. • Applied factory overhead at a rate of 80% of direct labor cost. • Transferred $741,500 of work in process to finished goods. . Sold goods with a cost of $697,400. •...
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc, during February, the first month of operations as a producer of road bikes: Purchased $524,800 of materials, • Used $451,300 of direct materials in production • Incurred $388,000 of direct labor wages. • Applied factory overhead at a rate of 70% of direct labor cost. • Transferred $1,066,500 of work in process to finished goods. • Sold goods with a cost of $1,033,900. • Revenues...
diludlu Financial statements of a manufacturing firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased $480,000 of materials. Used $434,500 of direct materials in production. Incurred $125,000 of direct labor wages. Applied factory overhead at a rate of 30% of direct labor cost. Transferred $566,100 of work in process to finished goods. Sold goods with a cost of $538,700. Revenues earned by selling bikes, $891,300....