Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of Purchased $651,400 of materials .Used $560,200 of direct materials in production . Incurred $484,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost . Transferred $1,350,900 of work in process to finished goods .Sold goods with a cost of $1,296,300 .Sold goods for $2,320,400 .Incurred $557,400 of selling expenses Incurred $207,400 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