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 $365,400 of materials • Used $314,200 of direct materials in production . Incurred $272,000 of direct labor wages • Applied factory overhead at a rate of 75% of direct labor cost • Transferred $758,600 of work in process to finished goods Sold goods with a cost of $719,800 • Sold goods for $1,288,400 . Incurred $309,500 of selling expenses . Incurred $115,200 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 2012 Selling and administrative expenses: Total selling and administrative expenses end of the first month of operations.
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 $365,400 of materials • Used $314,200 of direct materials in production . Incurred $272,000 of direct labor wages • Applied factory overhead at a rate of 75% of direct labor cost • Transferred $758,600 of work in process to finished goods Sold goods with a cost of $719,800 • Sold goods for $1,288,400 . Incurred $309,500 of selling expenses . Incurred $115,200 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 2012 Selling and administrative expenses: Total selling and administrative expenses end of the first month of operations.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 9E: Financial statements of a manufacturing firm The following events took place for Sorensen...
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