Financial Statements of a Manufacturing FirmThe following events took place for Chi-Lite Inc. during...

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Accounting

Financial Statements of a Manufacturing Firm
The following events took place for Chi-Lite Inc. during June,the first month of operations as a producer of road bikes:
• Purchased $481,100 of materials.
• Used $413,700 of direct materials in production.
• Incurred $356,000 of direct labor wages.
• Applied factory overhead at a rate of 80% of direct laborcost.
• Transferred $1,012,300 of work in process to finishedgoods.
• Sold goods with a cost of $962,200.
• Sold goods for $1,722,300.
• Incurred $413,700 of selling expenses.
• Incurred $154,000 of administrative expenses.
a. Prepare the June income statement forChi-Lite. Assume that Chi-Lite uses the perpetual inventorymethod.
Chi-Lite Inc.
Income Statement
Forthe Month Ended June 30
Revenues $
Cost of Goods Sold
Gross Profit $
Selling and Administrative Expenses:
Selling Expenses $
AdministrativeExpenses
Total Selling and AdministrativeExpenses
Income fromOperations $

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All figures are filled from the available data.
Requirement ‘a’

Chi-Lite Inc.
Income Statement
For the Month Ended June 30
Revenues		$ 1,722,300.00
Cost of Goods Sold		$ 962,200.00
Gross Profit		$ 760,100.00
Selling and Administrative Expenses:
Selling Expenses	$ 413,700.00
Administrative Expenses	$ 154,000.00
Total Selling and Administrative Expenses		$ 567,700.00
Income from Operations		$ 192,400.00

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In: AccountingFinancial Statements of a Manufacturing FirmThe following events took place for Chi-Lite Inc. during June,...Financial Statements of a Manufacturing FirmThe following events took place for Chi-Lite Inc. during June,the first month of operations as a producer of road bikes:•Purchased $481,100 of materials.•Used $413,700 of direct materials in production.•Incurred $356,000 of direct labor wages.•Applied factory overhead at a rate of 80% of direct laborcost.•Transferred $1,012,300 of work in process to finishedgoods.•Sold goods with a cost of $962,200.•Sold goods for $1,722,300.•Incurred $413,700 of selling expenses.•Incurred $154,000 of administrative expenses.a. Prepare the June income statement forChi-Lite. Assume that Chi-Lite uses the perpetual inventorymethod.Chi-Lite Inc.Income StatementForthe Month Ended June 30Revenues$Cost of Goods SoldGross Profit$Selling and Administrative Expenses:Selling Expenses$AdministrativeExpensesTotal Selling and AdministrativeExpensesIncome fromOperations$

•	Purchased $481,100 of materials.
•	Used $413,700 of direct materials in production.
•	Incurred $356,000 of direct labor wages.
•	Applied factory overhead at a rate of 80% of direct laborcost.
•	Transferred $1,012,300 of work in process to finishedgoods.
•	Sold goods with a cost of $962,200.
•	Sold goods for $1,722,300.
•	Incurred $413,700 of selling expenses.
•	Incurred $154,000 of administrative expenses.

Chi-Lite Inc.
Income Statement
Forthe Month Ended June 30
Revenues		$
Cost of Goods Sold
Gross Profit		$
Selling and Administrative Expenses:
Selling Expenses	$
AdministrativeExpenses
Total Selling and AdministrativeExpenses
Income fromOperations		$