Financial Statements of a Manufacturing Firm The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: Purchased $448,600 of materials Used $385,800 of direct materials in production Incurred $332,000 of direct labor wages Applied factory overhead at a rate of 70% of direct labor cost Transferred $912,200 of work in process to finished goods Sold goods with a cost of $892,700 Sold goods for $1,597,900 Incurred $383,900 of selling expenses Incurred $142,800 of administrative expenses a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Migliozzi Inc. Income Statement For the Month Ended July 31 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, July 31 Work in process inventory, July 31 Finished goods inventory, July 31