Financial Statements of a Manufacturing Firm
The following events took place for Rockhaven Biking Inc. during February, the first month of operations as a producer of road bikes:
Purchased $ of materials.
Used $ of direct materials in production.
Incurred $ of direct labor wages.
Applied factory overhead at a rate of of direct labor cost.
Transferred $ of work in process to finished goods.
Sold goods with a cost of $
Revenues earned by selling bikes, $
Incurred $ of selling expenses.
Incurred $ of administrative expenses.
a Prepare the income statement for Rockhaven Biking Inc. for the month ending February
Rockhaven Biking Inc.
Income Statement
For the Month Ended February
b Determine the inventory balances on February the end of the first month of operations.
Materials inventory, February
$
Work in process inventory, February
$
Finished goods inventory, February
$
