The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes:•Purchased $397,940 of materials•Used $343,700 of direct materials in production•Incurred $290,100 of direct labor wages•Applied factory overhead at a rate of 80% of direct labor cost•Transferred $813,970 of work in process to finished goods•Sold goods with a cost of $799,480•Sold goods for $1,405,850•Incurred $319,590 of selling expenses•Incurred $125,080 of administrative expenses Required:a.Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. b.Determine the inventory balances at the end of the first month of operations. a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Be sure to complete the statement heading. Refer to the list of Accounts, Labels and Amount Descriptions provided for the exactwording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. Colons (:) will fül inwhere needed.Migliozzi Inc.Income Statement(Label)14 (Label) b. Detemine the inventory balances at the end of the first month of operations.Materials inventory, July 31Work in process inventory, July 31Finished goods inventory, July 3124%2424

The income statement represents the net income or net loss for the company. It is calculated by…

Answered: The following events took place for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 11MC: Beginning inventory and direct material cost added during the month total $55,000. What is the value...

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The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes:

•	Purchased $397,940 of materials
•	Used $343,700 of direct materials in production
•	Incurred $290,100 of direct labor wages
•	Applied factory overhead at a rate of 80% of direct labor cost
•	Transferred $813,970 of work in process to finished goods
•	Sold goods with a cost of $799,480
•	Sold goods for $1,405,850
•	Incurred $319,590 of selling expenses
•	Incurred $125,080 of administrative expenses

Required:

a.	Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
b.	Determine the inventory balances at the end of the first month of operations.

a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Be sure to complete the statement heading. Refer to the list of Accounts, Labels and Amount Descriptions provided for the exact
wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. Colons (:) will fül in
where needed.
Migliozzi Inc.
Income Statement
(Label)
1
4 (Label)

b. Detemine the inventory balances at the end of the first month of operations.
Materials inventory, July 31
Work in process inventory, July 31
Finished goods inventory, July 31
24
%24
24

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