The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased $430,000 of materials. Used $389,200 of direct materials in production. Incurred $112,000 of direct labor wages. Applied factory overhead at a rate of 35% of direct labor cost. Transferred $512,500 of work in process to finished goods. Sold goods with a cost of $487,700. Revenues earned by selling bikes, $806,900. Incurred $164,100 of selling expenses. Incurred $79,800 of administrative expenses. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar. Materials inventory, February 28 $fill in the blank 15 Work in process inventory, February 28 $fill in the blank 16 Finished goods inventory, February 28
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased $430,000 of materials. Used $389,200 of direct materials in production. Incurred $112,000 of direct labor wages. Applied factory overhead at a rate of 35% of direct labor cost. Transferred $512,500 of work in process to finished goods. Sold goods with a cost of $487,700. Revenues earned by selling bikes, $806,900. Incurred $164,100 of selling expenses. Incurred $79,800 of administrative expenses. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar. Materials inventory, February 28 $fill in the blank 15 Work in process inventory, February 28 $fill in the blank 16 Finished goods inventory, February 28
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:
- Purchased $430,000 of materials.
- Used $389,200 of direct materials in production.
- Incurred $112,000 of direct labor wages.
- Applied factory
overhead at a rate of 35% of direct labor cost. - Transferred $512,500 of work in process to finished goods.
- Sold goods with a cost of $487,700.
- Revenues earned by selling bikes, $806,900.
- Incurred $164,100 of selling expenses.
- Incurred $79,800 of administrative expenses.
Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar.
Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar.
| Materials inventory, February 28 | $fill in the blank 15 |
| Work in process inventory, February 28 | $fill in the blank 16 |
| Finished goods inventory, February 28 |
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