The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $481,000 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 labor cost. • Transferred $1,012,300 of work in process to finished goods. • Sold goods with a cost of $957,200. • Revenues earned by selling bikes, $1,713,400. • Incurred $411,600 of selling expenses. • Incurred $153,200 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inv Rushmore Biking Inc. Income Statement For the Month Ended Fehruanı 38

The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $481,000 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 labor cost. • Transferred $1,012,300 of work in process to finished goods. • Sold goods with a cost of $957,200. • Revenues earned by selling bikes, $1,713,400. • Incurred $411,600 of selling expenses. • Incurred $153,200 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inv Rushmore Biking Inc. Income Statement For the Month Ended Fehruanı 38

Name: Financial Statements of a Manufacturing FirmThe following events took
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Financial Statements of a Manufacturing FirmThe following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:• Purchased $481,000 of materials.• Used $413,700 of direct materials in

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Company manufactures furniture at its New York factory. Some of its costs from the past year include: Depreciation on sales office $ 9,700 Depreciation on factory equipment 16,600 Factory supervisor salary 50,200 Sales commissions 23,600 Lubricants used in factory equipment 3,000 Insurance costs for factory 21,400 Wages paid to maintenance workers 115,400 Fabric used to upholster furniture 10,800 Freight-in (on raw materials) 3,600 Costs of delivery to customers 9,000 Wages paid to assembly-line workers 115,600 Lumber used to build product 82,200 Utilities in factory 54,800 Utilities in sales office 26,100 Direct material costs for The Company totaled
Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 31,000 Indirect materials used in production $ 4,740 Direct labor $ 58,800 Manufacturing overhead applied to work in process $ 87,200 Underapplied overhead $ 4,180 Inventories Beginning Ending Raw materials $ 10,700 $ 19,500 Work in process $ 55,900 $ 65,700 Finished goods $ 34,600 $ 44,000 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $61,300 of materials. Used $47,200 of direct materials in production. Incurred $70,500 of direct labor wages. Incurred $99,300 of factory overhead. Transferred $164,900 of work in process to finished goods. Sold goods for $294,900. Sold goods with a cost of $131,200. Incurred $75,400 of selling expense. Incurred $33, 100 of administrative expense. Using the information given, complete the following: Question Content Area a. Prepare the January income statement for Sorensen Manufacturing Company.
Larned Corporation recorded the following transactions for the just completed month. a. $86,000 in raw materials were purchased on account. b. $84,000 in raw materials were used in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $120,500 were paid in cash. Of this amount, $100,500 was for direct labor and the remainder was for indirect labor. d. Depreciation of $197,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 23 4 $86,000 in raw materials were purchased on account. Note: Enter debits before credits. Transaction General Journal a. Record entry Clear entry Debit Credit View general journal
Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 30,000 Indirect materials used in production $ 5,000 Direct labor $ 58,000 Manufacturing overhead applied to work in process $ 87,000 Underapplied overhead $ 4,000 Inventories Beginning Ending Raw materials $ 12,000 $ 18,000 Work in process $ 56,000 $ 65,000 Finished goods $ 35,000 $ 42,000 Required: 1. Prepare a schedule of cost of goods manufactured for the month (see picture below for reference). 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 30,000 Indirect materials used in production $ 5,000 Direct labor $ 58,000 Manufacturing overhead applied to work in process $ 87,000 Underapplied overhead $ 4,000 Inventories Beginning Ending Raw materials $ 12,000 $ 18,000 Work in process $ 56,000 $ 65,000 Finished goods $ 35,000 $ 42,000 Can you please help me to do the following: Prepare a schedule of cost of goods manufactured for the month as well as prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
Altanta Industries manufactures gadgets. In the month of March, the company incurred the following: Actual Gadgets produced 10,563 Direct Materials 20,000 purchased pounds 19,000 Direct Materials used pounds Cost of Direct $40,000 Materials purchased 2,463 Direct Labor Hours. hours Total Direct Labor Cost $36,566 The standards for production are: Direct Materials per gadget Cost of Direct Materials per pound Direct Labor per gadget Standards 3 lbs per gadget $5 per pound 18 minutes per gadget (.30 hours) Direct Labor Cost per gadget $6 per gadget What is the Direct Labor Rate Variance? Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: Budget Actual 7,600 hours 6,100 hours Direct labor hours Machine hours 7,200 hours 6,300 hours Depreciation on salespeople's autos $23,000 $23,000 Indirect materials $48,500 $50,500 Depreciation on trucks used to deliver uniforms to customers solla $13,000 $70,000 $40,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $72,500 $42,000 Customer service hotline $19,000 $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements 1odel tba 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers usA acco
Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 30,000 Indirect materials used in production $ 4,580 Direct labor $ 59,700 Manufacturing overhead applied to work in process $ 88,000 Underapplied overhead $ 4,200 Inventories Beginning Ending Raw materials $ 11,800 $ 19,200 Work in process $ 55,500 $ 66,300 Finished goods $ 33,600 $ 42,900 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $66,200 of materials. Used $51,000 of direct materials in production. Incurred $76,100 of direct labor wages. Incurred $107,200 of factory overhead. Transferred $178,100 of work in process to finished goods. Sold goods for $318,400. Sold goods with a cost of $141,700. Incurred $81,400 of selling expense. Incurred $35,700 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 $fill in the blank 968c70038fb3069_2 fill in the blank 968c70038fb3069_4 $fill in the blank 968c70038fb3069_6 Operating expenses: $fill in the blank 968c70038fb3069_8 fill in the blank 968c70038fb3069_10 Total…
Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours Job Bravo Direct labor-hours Machine-hours Assembly $1,400,000 70,000 28,000 Assembly Fabrication 15 7 7 10 Fabrication Total $1,680,000 $3,080,000 Total 22 17 42,000 140,000 112,000 168,000 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied…