9. The following events took place for Focault Inc. during July 20Y2, 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 Focault. Assume that Focault uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries.
B.	Determine the inventory balances at the end of the first month of operations.

LabelsFor the Month Ended July 31, 20Y2July 31, 20Y2Selling and administrative expensesAmount DescriptionsCost of goods soldFactory overheadGross profitIncome from operationsMaterialsRevenuesSelling expensesAdministrative expensesTotal selling and administrative expenses