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Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc, during June, the first month of operations as a producer of road bikes: Purchased $218,200 of materials. Used $187.700 of direct materials in production Incurred $160,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor costi Transferred $449,000 of work in process to finished goods Sold goods with a cost of $429,900. Sold goods for $769,500. Incurred $184,900 of selling expenses. Incurred $68,800 of administrative expenses. a. Prepare the June income statement for Chr-Lite. Assume that Chi-Lite uses the perpetual inventory method. Chi-Lite Inc. Income Statement For the Month Ended June 30 Cost of Goods Sold Selling and Administrative Expenses: Total Selling and Administrative Expenses b. Determine the inventory balances at the end of the first month of operations Materials inventory, June 30 Work in process inventory, June 30