The following events took place for Rushmore Biking Inc. during February, the first month of operations as
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Question:
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:
• | Purchased $600,200 of materials. |
• | Used $516,200 of direct materials in production. |
• | Incurred $444,000 of direct labor wages. |
• | Applied factory overhead at a rate of 70% of direct labor cost. |
• | Transferred $1,220,200 of work in process to finished goods. |
• | Sold goods with a cost of $1,200,400. |
• | Revenues earned by selling bikes, $2,148,700. |
• | Incurred $516,200 of selling expenses. |
• | Incurred $192,100 of administrative expenses. |
Question Content Area
a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method.
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
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