The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $396,010 of materials. Used $340,050 of direct materials in production. Incurred $294,400 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. Transferred $812,120 of work in process to finished goods. Sold goods with a cost of $791,220. Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. • Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. Inventory Balances b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 $55,960.00 Work in process inventory, June 30 Finished goods inventory, June 30 $20,900.00 %24

The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $396,010 of materials. Used $340,050 of direct materials in production. Incurred $294,400 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. Transferred $812,120 of work in process to finished goods. Sold goods with a cost of $791,220. Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. • Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. Inventory Balances b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 $55,960.00 Work in process inventory, June 30 Finished goods inventory, June 30 $20,900.00 %24

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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What is the balance work in process inventory at the end of the month
Question 1
Question 2, Part 2
Complete the information in the cost computations shown here: Raw materials Beginning inventory Purchases Materials available for use Ending inventory Materials used in production Work in process inventory Beginning inventory Materials used in production Direct labor Overhead applied Manufacturing costs incurred Ending inventory Cost of goods manufactured Finished goods inventory Beginning inventory Cost of goods manufactured Goods available for sale Ending inventory Cost of goods sold $341 1,533 323 $931 1,536 $22,450 936 $25,008 $21,792
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ttempt%3D1347310&cmid%3D701917 ming services SQU Libraries SQU Portal Attendance English (en Which of the following is correct with resnect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? Select one: a. The balance in the Work-in-Process account after allocation will be higher if the underapplied overhead is closed out by allocating it to all appropriate accounts. b. The balance in the Work-in-Process account after allocation will be the same under either method. C. None of given ANSWER is correct. d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. X e. Cost of Goods Sold will be higher if the underapplied. overhead is closed out by allocatinog it to the inventory accounts as well as to Cost of Goods Sold. The corect
To make changes to inventory levels, you click on O materials buffer icon O customer orders icon O job completion icon Ostation queues icon ?