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 $470,000 of materials. Used $403,900 of direct materials in production. Incurred $348,000 of direct labor wages. Applied factory overhead at a rate of 72% of direct labor cost. Transferred $950,000 of work in process to finished goods. Sold goods with a cost of $793,800. Sold goods for $1,408,500. Incurred $317,900 of selling expenses. Incurred $125,700 of administrative expenses. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Round your answers to the nearest dollar. 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. Round your answers to the nearest dollar. Materials inventory, June 30 $ Work in process inventory, June 30 $ Finished goods inventory, June 30 $