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 $210,000 of materials.

Used $180,600 of direct materials in production.

Incurred $156,000 of direct labor wages.

Applied factory overhead at a rate of 70% of direct labor cost.

Transferred $428,000 of work in process to finished goods.

Sold goods with a cost of $417,900.

Sold goods for $748,000.

Incurred $179,700 of selling expenses.

Incurred $66,900 of administrative expenses.

*** Please fill the accounts with the "$" next to them.

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

Chi-Lite Inc.
Income Statement
For the Month Ended June 30
Revenues		$
Cost of Goods Sold		$
Gross Profit		$
Selling Expenses	$
Administrative Expenses		$
Income from Operations		$

b. Determine the inventory balances at the end of the first month of operations.

Materials inventory, June 30	$
Work in process inventory, June 30	$
Finished goods inventory, June 30	$