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 $201,700 of materials.
	Used $173,500 of direct materials in production.
	Incurred $148,000 of direct labor wages.
	Applied factory overhead at a rate of 75% of direct labor cost.
	Transferred $415,200 of work in process to finished goods.
	Sold goods with a cost of $397,300.
	Sold goods for $711,200.
	Incurred $170,800 of selling expenses.
	Incurred $63,600 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	$