essionLocator=&inprogress=false eBook Financial Statements of a Manufacturing Firm . The following events took place for Bridger Bikes Inc. during July 2016, the first month of operations, as a producer of road bikes: Purchased $340,000 of materials. Used $329,000 of direct materials in production, Incurred $160,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $590,000 of work in process to finished goods. Sold goods with a cost of $550,000. Sold goods for $918,000. Incurred $132.500 of selling expenses. Incurred $80,000 of administrative expenses. a. Prepare the July income statement for Bridger Bikes Inc. Assume that Bridper Bikes uses the perpetual Inventory method. Bridger Bikes Inc. Income Statement For the Month Ended July 31, 2016 Revenues 918.000 Cost of goods sold 550.000 Gross profit 5 363.000 Selling expenses 5132.500 Administrative expenses 0.000 132 500 Income froni operations $160.000 chuck My Block Revenues 918,000 Cost of goods sold 550,000 Gross profit 368,000, Selling expenses 132,500 Administrative expenses 80,000 | 0 132,500X Income from operations 160,000 x Feedback b. Determine the inventory balances at the end of the first month of operations. Materials inventory Work-in-process inventory X Finished goods inventory M Feedack Check My Week The materials inventory, sometimes called raw materials inventory, consists of the costs of the direct a