eBook Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $600,200 of materials. Used $516,200 of direct materials in production. Incurred $444,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. . Transferred $1,241,500 of work in process to finished goods. Sold goods with a cost of $1,188,400. Sold goods for $2,127,200. Incurred $511,000 of selling expenses. Incurred $190,100 of administrative expenses. a. Prepare the lune income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Chi-Lite Inc. Income Statement For the Month Ended June 30 Selling and Administrative Expenses: Total Selling and Administrative Expenses b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 Work in process inventory, June 30 $ Finished goods inventory, June 30 Check My Work