EX 16-14 Financial statements of a manufacturing fim the following events took place for Chi-Lite Inc. during June, the first month of operatiens 0,000 ucer of road bikes: Purchased s400.0 of matenials . 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 $1,400,0o0 . Incurred $316,000 of selling expenses Incurred $125,000 of administrative expenses. 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