Hawkins Bikes, Inc. is a producer of road bikes. During July 20Y6, the company's first month of
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Question:
Hawkins Bikes, Inc. is a producer of road bikes. During July 20Y6, the company's first month of operations, the following events took place:
- Purchased $246,100 of materials.
- Used $211,600 of direct materials in production.
- Incurred $184,000 of direct labor wages.
- Applied factory overhead at a rate of 75% of direct labor cost.
- Transferred $512,300 of work in process to finished goods.
- Sold goods with a cost of $489,700.
- Sold goods for $876,600.
- Incurred $210,600 of selling expenses.
- Incurred $78,400 of administrative expenses.
Question Content Area
a. Prepare the July income statement for Hawkins Bikes Inc. Assume that Hawkins Bikes uses the perpetual inventory method.
Line Item Description | Amount | Amount |
---|---|---|
$ | ||
$ | ||
$ | ||
blank | ||
blank | blank | |
$ |
Question Content Area
b. Determine the inventory balances at the end of the first month of operations.
Line Item Description | Amount |
---|---|
Materials inventory | $ |
Work in process inventory | $ |
Finished goods inventory | $ |
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