10. The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes:•Purchased $404,710 of materials•Used $344,090 of direct materials in production•Incurred $298,900 of direct labor wages•Applied factory overhead at a rate of 78% of direct labor cost•Transferred $814,310 of work in process to finished goods•Sold goods with a cost of $781,480•Sold goods for $1,396,720•Incurred $319,130 of selling expenses•Incurred $120,230 of administrative expenses Required:A.Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries.B.Determine the inventory balances at the end of the first month of operations. Income StatementA. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Refer to the list of Labels and AmountDescriptions provided for the exact wording of the answer choices for text entries. Enter all amounts as a positive numbers.Focault Inc.Income Statement(Label)24 (Label)67 Inventory BalancesB. Determine the inventory balances at the end of the first month of operations.Materials inventory, July 31Work in process inventory, July 312$Finished goods inventory, July 31

Net income = Sales- COGS- other selling and administrative expenses. Ending Finished goods= Units…

Answered: The following events took place for…

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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10. The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes:

•	Purchased $404,710 of materials
•	Used $344,090 of direct materials in production
•	Incurred $298,900 of direct labor wages
•	Applied factory overhead at a rate of 78% of direct labor cost
•	Transferred $814,310 of work in process to finished goods
•	Sold goods with a cost of $781,480
•	Sold goods for $1,396,720
•	Incurred $319,130 of selling expenses
•	Incurred $120,230 of administrative expenses

	Required:
A.	Prepare the July income statement for Focault. Assume that Focault 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.
B.	Determine the inventory balances at the end of the first month of operations.

Income Statement
A. Prepare the July income statement for Focault. Assume that Focault 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. Enter all amounts as a positive numbers.
Focault Inc.
Income Statement
(Label)
2
4 (Label)
6
7

Inventory Balances
B. Determine the inventory balances at the end of the first month of operations.
Materials inventory, July 31
Work in process inventory, July 31
2$
Finished goods inventory, July 31

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