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The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $396,010 of materials. Used $340,050 of direct materials in production. Incurred $294,400 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. Transferred $812,120 of work in process to finished goods. Sold goods with a cost of $791,220. Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. • Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. Inventory Balances b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 $55,960.00 Work in process inventory, June 30 Finished goods inventory, June 30 $20,900.00 %24

The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $396,010 of materials. Used $340,050 of direct materials in production. Incurred $294,400 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. Transferred $812,120 of work in process to finished goods. Sold goods with a cost of $791,220. Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. • Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. Inventory Balances b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 $55,960.00 Work in process inventory, June 30 Finished goods inventory, June 30 $20,900.00 %24

Managerial Accounting
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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Please solve for work in process inventory June 30 how do I solve this 

eBook Print Item Financial statements of a manufacturing firm Instructions Labels and Amount Descriptions Income Statement Inventory Balances Instructions The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $396,010 of materials. • Used $340,050 of direct materials in production. Incurred $294,400 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. Transferred $812,120 of work in process to finished goods. • Sold goods with a cost of $791,220. Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. Inventory Balances b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 $55,960.00 Work in process inventory, June 30 Finished goods inventory, June 30 $20,900.00 Check My Work %24
Transcribed Image Text:eBook Print Item Financial statements of a manufacturing firm Instructions Labels and Amount Descriptions Income Statement Inventory Balances Instructions The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $396,010 of materials. • Used $340,050 of direct materials in production. Incurred $294,400 of direct labor wages. Applied factory overhead at a rate of 76% of direct labor cost. Transferred $812,120 of work in process to finished goods. • Sold goods with a cost of $791,220. Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. Inventory Balances b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 $55,960.00 Work in process inventory, June 30 Finished goods inventory, June 30 $20,900.00 Check My Work %24
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