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gregori [183]
3 years ago
6

Financial statements of a manufacturing firm The following events took place for Rushmore Biking Inc, during February, the first

month of operations as a producer of road bikes:
• Purchased $390,000 of materials.
• Used $353,000 of direct materials in production.
• Incurred $101,600 of direct labor wages.
• Applied factory overhead at a rate of 34% of direct labor cost.
• Transferred $463,900 of work in process to finished goods.
• Sold goods with a cost of $441,400.
• Revenues earned by selling bikes, $ 730,300.
• Incurred $148,500 of selling expenses.
• Incurred $72,200 of administrative expenses
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet
a. Prepare the income statement for Rushmore Biking for the month ending February 28.
Round your answers to the nearest dollar
Rushmore Biking Inc.
Income Statement
For the Month Ended February 28
Revenues
Cost of Goods Sold
Gross Profit Selling and Administrative Expenses:
Total Selling and Administrative Expenses
Business
1 answer:
pentagon [3]3 years ago
3 0

Answer and Explanation:

The Preparation of income statement is prepared below:-

<u>Rushmore Biking Inc. </u>

<u>Income statement </u>

<u>For the month ended February 28 </u>

<u>Particulars                                                 Amount</u>

Revenues                                               $7,30,300

Less: Cost of goods sold                      $4,41,400

Gross profit                                            $2,88,900

Selling and administrative expenses:  

Selling expenses                    $1,48,500

Administrative expenses       $72,200  

Less: Total Selling and administrative

expenses                                                    $2,20,700

<u>Income from operations                             $68,200</u>

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Answer:

c.credit to Wages Payable for $6,300.

Explanation:

The journal entry to record the wages expense is shown below;

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The gross margin ratio is also known as the gross profit margin or the gross profit percentage.<span>

The gross margin ratio is computed by dividing the company's gross profit dollars by its net sales dollars.</span>

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Required Problems with behavioral finance include: I. The behavioralists tell us nothing about how to exploit any irrationality.
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ALL OF THE ABOVE

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A landscaping company accepts MasterCard as payment for $1,000 worth of services. MasterCard charges a service fee of 2 percent.
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Answer:

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