Financial Statements of a Manufacturing Firm The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: • Purchased $258,000 of materials • Used $221,900 of direct materials in production Incurred $192,000 of direct labor wages • Applied factory overhead at a rate of 80% of direct labor cost • Transferred $544,800 of work in process to finished goods • Sold goods with a cost of $516,000 Sold goods for $923,600 Incurred $221,900 of selling expenses Incurred $82,600 of administrative expenses a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Migliozzi Inc. Income Statement For the Month Ended July 31 Selling and administrative expenses: Total selling and administrative expenses b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 Work in process inventory, July 31 Finished goods inventory, July 31

Financial Statements of a Manufacturing Firm The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: • Purchased $258,000 of materials • Used $221,900 of direct materials in production Incurred $192,000 of direct labor wages • Applied factory overhead at a rate of 80% of direct labor cost • Transferred $544,800 of work in process to finished goods • Sold goods with a cost of $516,000 Sold goods for $923,600 Incurred $221,900 of selling expenses Incurred $82,600 of administrative expenses a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Migliozzi Inc. Income Statement For the Month Ended July 31 Selling and administrative expenses: Total selling and administrative expenses b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 Work in process inventory, July 31 Finished goods inventory, July 31

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Description: Financial Statements of a Manufacturing FirmThe following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes:• Purchased $258,000 of materialsUsed $221,900 of direct materials in production• I

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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