eBook Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during luly 2012, the first month of operations as a producer of road bikes: Purchased $336,700 of materials Used $289,600 of direct materials in production incurred $248,000 of direct labor wages Applied factory overhead at a rate of 80% of direct labor cost Transferred $706,600 of work in process to finished goods Sold goods with a cost of $673,400 Sold goods for $1,205,400 Incurred $289,600 of selling expenses Incurred $107,700 of administrative expenses . a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 2012 Selling and administrative expenses Total selling and administrative expenses . Incurred $107,700 of administrative expenses a. Prepare the July income statement for Focault. Assume that focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 20Y2 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, July 31 Work in process inventory, July 31 Finished goods inventory, July 31 . Check My Work 3 more Check My Work uses remaining Email Instructor All work saved