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Financial Statements of a Manufacturing Business Hawkins Bikes, Inc. is a producer of road bikes. During July 20 Y6, the company's first month of operations, the following events took place: - Purchased $170,000 of materials. - Used $164,500 of direct materials in production. - Incurred $80,000 of direct labor wages. - Applied factory overhead at a rate of 75% of direct labor cost. - Transferred $295,000 of work in process to finished goods. - Sold goods with a cost of $275,000. - Sold goods for $459,000. - Incurred $66,250 of selling expenses. - Incurred $40,000 of administrative expenses. a. Prepare the July income statement for Hawkins Bikes Inc. Assume that Hawkins Bikes Feedback Theck My Work Revenues less the cost of goods sold is equal to gross profit. Gross profit less the selli from operations. b. Determine the inventory balances at the end of the first month of operations