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 $429,400 of materials. Used $369,300 of direct materials in production. Incurred $316,000 of direct labor wages. Applied factory overhead at a rate of 70% of direct labor cost. Transferred $870,200 of work in process to finished goods. Sold goods with a cost of $850,200. Sold goods for $1,521,900. Incurred $365,600 of selling expenses. Incurred $136,000 of administrative expenses