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 $233,400 of materials.
	Used $200,700 of direct materials in production.
	Incurred $172,000 of direct labor wages.
	Applied factory overhead at a rate of 75% of direct labor cost.
	Transferred $481,600 of work in process to finished goods.
	Sold goods with a cost of $464,500.
	Sold goods for $831,500.
	Incurred $199,700 of selling expenses.
	Incurred $74,300 of administrative expenses.

a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method.