Financial Statements of a Manufacturing Firm The following events took place for Rockhaven Biking Inc. during February, the f Purchased $624.300 of materials Used $536,900 of direct materials in production Incurred $460,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost. Transferred $1,288,200 of work in process to finished goods Sold goods with a cost of $1,229,900 Revenues earned by selling bes, 32,201,500 incurred 3528,900 of seting expenses. Incurred $196,800 of administrative expenses Prepare the income statement for Rockhaven biking Inc, for the month
Financial Statements of a Manufacturing Firm The following events took place for Rockhaven Biking Inc. during February, the f Purchased $624.300 of materials Used $536,900 of direct materials in production Incurred $460,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost. Transferred $1,288,200 of work in process to finished goods Sold goods with a cost of $1,229,900 Revenues earned by selling bes, 32,201,500 incurred 3528,900 of seting expenses. Incurred $196,800 of administrative expenses Prepare the income statement for Rockhaven biking Inc, for the month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial Statements of a Manufacturing Firm
The following events took place for Rockhaven Biking Inc, during February, the first month of operations as a producer of road bikes
Purchased $624,300 of materials
Used $536,900 of direct materials in production.
Incurred $460,000 of direct labor wages.
Applied factory overhead at a rate of 75% of direct labor cost
Transferred $1,285,200 of work in process to finished goods
Sold goods with a cost of $1,229,900
Revenues earned by selling bikes, 32,201,500,
incurred $528,900 of selling expenses.
Incurred $196,800 of administrative expenses.
a. Prepare the income statement for Rockhaven Biking Inc, for the month ending February 28
Rockhaven Biking Inc.
Income Statement
For the Month Ended February 28
Une Rem Description
Selling and administrative expense
Tutaling and administrative expenses
Mould Amount
b. Ostamme the mentory telarors on Piruary 28, the end of the first month of operations.
Materials inventurg February 20
Wirk in process inventory, Tetruary 28
Tid goods besery Petruary 28
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