Chapter 17 Job Order Costing819 EX 17-14 Financial statements of a manufacturing firm The following events took place for Chi-Lite Inc. during June 2016, the first month of . Purchased $400,000 of materials. oBJ.2 /a Income from serations, $170,000 operations as a producer of road bikes: Used $343,750 of direct materials in production. Incurred $295,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. Transferred $815,000 of work in process to finished goods. Sold goods with a cost of $789,000. . Sold goods for $1,400,000. Incurred $316,000 of selling expenses. Incurred $125,000 of administrative expenses. a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. b. Determine the inventory balances at the end of the first month of operations. EX 17-15 Alvarez M Decision making with job order costs tanufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. OBJ.3