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The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: Purchased $399,560 of materials Used $342,540 of direct materials in production Incurred $290, 100 of direct labor wages Applied factory overhead at a rate of 73% of direct labor cost Transferred $818,820 of work in process to finished goods Sold goods with a cost of $796,000 Sold goods for $1,400,110 Incurred $313,290 of selling expenses Incurred $125,090 of administrative expenses Accounts Administrative expenses Cost of goods sold Revenues Selling expenses Labels For the Month Ended July 31 July 31 Selling and administrative expenses Amount Descriptions Gross profit Income from operations Total selling and administrative expenses a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Be sure to complete the statement heading. Refer to the list of Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. Colons (:) will fill in where needed. Migliozzi Inc. Income Statement (Label) 1 2 3 4 (Label) 5 6 7 8 b. Determine the inventory balances at the end of the first month of operations. $ Materials inventory, July 31 Work in process inventory, July 31 $ Finished goods inventory, July 31 $