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 $496,700 of materials Used $427,200 of direct materials in production Incurred $368,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost Transferred $1,028,400 of work in process to finished goods Sold goods with a cost of $978,500 Sold goods for $1,751,500 Incurred 5420,500 of seling expenses Incurred $156,600 of administrative expenses a. Prepare the July income statement for Migliozzi, Assume that Millozzi 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. Suly 31 Work in process inventory, July 31 Finished goods inventory, July 31