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 $
Feedback
a. Both product and period costs must be reported on the incomestatement and are necessary to measure income.
b. Determine the inventory balances at the endof the first month of operations.
Materials inventory, June 30 $
Work in process inventory, June 30 $
Finished goods inventory, June 30 $

Answer & Explanation Solved by verified expert

4.3 Ratings (669 Votes)

All figures are filled from the available data Requirement a ChiLite Inc Income Statement For the Month Ended June 30 Revenues 172230000 Cost of Goods Sold 96220000 Gross Profit 76010000 See Answer

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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$Feedbacka. Both product and period costs must be reported on the incomestatement and are necessary to measure income.b. Determine the inventory balances at the endof the first month of operations.Materials inventory, June 30$Work in process inventory, June 30$Finished goods inventory, June 30$

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		$

•	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.

Materials inventory, June 30	$
Work in process inventory, June 30	$
Finished goods inventory, June 30	$