I figured out the materials inventory, but how do I find the WIP and Finished goods inventory? b. Determine the inventory balances at the end of the first month of operations.29,800 ✔$ 473,700 XMaterials inventoryWork in process inventoryFinished goods inventory195,200 X Financial Statements of a Manufacturing FirmThe following events took place for Bridger Bikes Inc. during July 20Y6, the first month of operations, as a producer of road bikes:Purchased $212,700 of materials.Used $182,900 of direct materials in production.Incurred $156,000 of direct labor wages.Applied factory overhead at a rate of 75% of direct labor cost.Transferred $437,700 of work in process to finished goods.Sold goods with a cost of $425,400.Sold goods for $761,500.Incurred $182,900 of selling expenses.Incurred $68,100 of administrative expenses.

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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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I figured out the materials inventory, but how do I find the WIP and Finished goods inventory?

b. Determine the inventory balances at the end of the first month of operations.
29,800 ✔
$ 473,700 X
Materials inventory
Work in process inventory
Finished goods inventory
195,200 X

Financial Statements of a Manufacturing Firm
The following events took place for Bridger Bikes Inc. during July 20Y6, the first month of operations, as a producer of road bikes:
Purchased $212,700 of materials.
Used $182,900 of direct materials in production.
Incurred $156,000 of direct labor wages.
Applied factory overhead at a rate of 75% of direct labor cost.
Transferred $437,700 of work in process to finished goods.
Sold goods with a cost of $425,400.
Sold goods for $761,500.
Incurred $182,900 of selling expenses.
Incurred $68,100 of administrative expenses.

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Ending inventory is the amount of stock that is held by the entity at the end of the period. Inventory for a manufacturing unit includes raw material, work in process and finished goods.

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