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 $398,100 of materials.
	Used $342,400 of direct materials in production.
	Incurred $296,000 of direct labor wages.
	Applied factory overhead at a rate of 75% of direct labor cost.
	Transferred $826,000 of work in process to finished goods.
	Sold goods with a cost of $788,200.
	Sold goods for $1,410,900.
	Incurred $338,900 of selling expenses.
	Incurred $126,100 of administrative expenses.

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 $398,100 of materials. Used $342,400 of direct materials in production. Incurred $296,000 of direct labor wages. . Applied factory overhead at a rate of 75% of direct labor cost. Transferred $826,000 of work in process to finished goods. Sold goods with a cost of $788,200 Sold goods for $1,410,900 Incurred $338,900 of selling expenses. Incurred $126,100 of administrative expenses. 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 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, June 30 Work in process inventory, June 30 Finished goods inventory, June 30