Financial Statements of a Manufacturing Firm The following events took place for Bridger Bikes Inc. during July 20Y6, the first month of operations, as a producer of road bikes: - Purchased $426,200 of materials. - Used $366,500 of direct materials in production. - Incurred $316,000 of direct labor wages. - Applied factory overhead at a rate of 75% of direct labor cost. - Transferred $882,700 of work in process to finished goods. - Sold goods with a cost of $839,600. - Sold goods for $1,502,900. - Incurred $361,000 of selling expenses. - Incurred $134,300 of administrative expenses. a. Prepare the July income statement for Bridger Bikes Inc. Assume that Bridger Bikes uses the perpetual inventory method. Feedback Check My Work Revenues less the cost of goods sold is equal to gross profit. Gross profit less the selling and administrative expenses is equal to the income from operations. b. Determine the inventory balances at the end of the first month of operations