Financial Statements of a Manufacturing Firm The following events took place for Bridger Bikes Inc. during July 20Y6, the first month of operations, as a producer of road bikes . Purchased $391,000 of materials. . Used $336,300 of direct materials in production. . Incurred $288,000 of direct labor wages. Applied factory overhead at a rate of 70% of direct labor cost. . Transferred $792,900 of work in process to finished goods. . Sold goods with a cost of $774,200 . Sold goods for $1,385,800 . Incurred $332,900 of selling expenses. . Incurred $123,900 of administrative expenses a. Prepare the July income statement for Bridger Bikes Inc. Assume that Bridger Bikes uses the perpetual inventory method Bridger Bikes Inc. Income Statement For the Month Ended October 31, 20Y6 1,385,800 Cost of goods sold Gross profit Selling expenses Administrative expenses123,900 Income from operations 774,200 611,600 V 332,900 456,800 154,800 b. Determine the inventory balances at the end of the first month of operations. 54,700 Materials inventory Work in process inventory Finished goods inventory