Requirement a | ||
Rushmore Biking Inc. | ||
Income Statement | ||
For the Month Ended February 28 | ||
Revenues | 2,070,000 | |
Cost of goods sold | 1,156,400 | |
Gross Profit | 913,600 | |
Selling and administrative expenses: | ||
Selling expenses | 497,300 | |
Administrative expenses | 185,000 | |
Total selling and administrative expenses | 682,300 | |
Net income | 231,300 |
Requirement b | |
Purchase of Materials | 581,100 |
Less: Materials used in production | 499,700 |
Materials inventory, February 28 | 81,400 |
Direct materials | 499,700 |
Direct labor wages | 432,000 |
Factory Overhead (432,000 x 75%) | 324,000 |
Total Work in process | 1,255,700 |
Less: Transferred to finished goods | 1,205,500 |
Work in Process inventory, February 28 | 50,200 |
Work in process inventory transferred to finished goods | 1,205,500 |
Less: Cost of goods sold | 1,156,400 |
Finished goods inventory, February 28 | 49,100 |
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during...
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 $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 $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 $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...
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 $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. •...
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 $601,400 of materials. • Used $517,200 of direct materials in production. • Incurred $444,000 of direct labor wages. • Applied factory overhead at a rate of 80% of direct labor cost. • Transferred $1,263,700 of work in process to finished goods. • Sold goods with a cost of $1,190,800. •...
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 $276,100 of materials. • Used $237,400 of direct materials in production. • Incurred $204,000 of direct labor wages. • Applied factory overhead at a rate of 75% of direct labor cost. • Transferred $570,600 of work in process to finished goods. • Sold goods with a cost of $552,200. •...