a. Income from operations, $195,000 EXCEL ONLINE EX 19-13 Financial statements of a manufacturing firm OBJ. 2 The following events took place for Migliozzi Inc. during July, the first month of opera- tions as a producer of road bikes: Purchased $416,000 of materials Used $358,000 of direct materials in production Incurred $308,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost Transferred $851,000 of work in process to finished goods Sold goods with a cost of $806,000 Sold goods for $1,460,000 Incurred $328,000 of selling expenses Incurred $131,000 of administrative expenses a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the per- petual inventory method. b. Determine the inventory balances at the end of the first month of operations.