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The following events took place for Wreckin Ronnie Inc during July 2009, the first month of operations as a producer of road bikes:+Purchased 165,800 of materials+Used 147,600 of direct materials in production+Incurred 96,250 of direct labor wages+Applied factory overhead at a rate of 80% of direct labor cost+Transferred 302,900 of work in process to finished goods+Sold goods with a cost of 301,300+Sold goods for 520,000+Incurred 119,000 of selling expenses+Incurred 52,100 of administrative expensesa. Prepare the July income statement for Wrecker Ronnie. Assume that Wrecker Ronnie uses the perpetual inventory method.b. Determine the invenotry balances at the end of the first month of operations.
The following events took place for Wreckin Ronnie Inc during July 2009, the first month of operations as a producer of road bikes:+Purchased 165,800 of materials+Used 147,600 of direct materials…
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