Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: Purchased $320,000 of materials Used $275,000 of direct materials in production Incurred $236,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost Transferred $652,000 of work in process to finished goods Sold goods with a cost of $630,000 Sold goods for $1,120,000 Incurred $252,800 of selling expenses Incurred $100,000 of administrative expenses b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 $ Work in process inventory, July 31 $ Finished goods inventory, July 31 $ Feedback
Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: Purchased $320,000 of materials Used $275,000 of direct materials in production Incurred $236,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost Transferred $652,000 of work in process to finished goods Sold goods with a cost of $630,000 Sold goods for $1,120,000 Incurred $252,800 of selling expenses Incurred $100,000 of administrative expenses b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 $ Work in process inventory, July 31 $ Finished goods inventory, July 31 $ Feedback
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 Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes:
- Purchased $320,000 of materials
- Used $275,000 of direct materials in production
- Incurred $236,000 of direct labor wages
- Applied factory overhead at a rate of 75% of direct labor cost
- Transferred $652,000 of work in process to finished goods
- Sold goods with a cost of $630,000
- Sold goods for $1,120,000
- Incurred $252,800 of selling expenses
- Incurred $100,000 of administrative expenses
b. Determine the inventory balances at the end of the first month of operations.
| Materials inventory, July 31 | $ |
| Work in process inventory, July 31 | $ |
| Finished goods inventory, July 31 | $ |
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