I had a buddy die, and a few of us are rebuilding his bike for his family. Long story short he was tweaked out and the bike is a mess. We are in the middle of rebuilding his transmission. We followed the service manual, everything seems right. My only question is, I don't have anything else together except the transmission and the back wheel spins freely in every gear. Is that correct as the primary and clutch is not on the bike?

No Such thing as a stupid question, but this might be one of them

 

Yes that is normal if the trans is not connected to the engine, by the clutch and primary.