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 $182,900 of materials . Used $157,300 of direct materials in production. . Incurred $136,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $386,000 of work in process to finished goods. . Sold goods with a cost of $365,800. . Sold goods for $654,800. . Incurred $157,300 of selling expenses. . Incurred $58,500 of administrative expenses