Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: Purchased $396,900 of materials Used $341,300 of direct materials in production Incurred $292,000 of direct labor wages Applied factory overhead at a rate of 80% of direct labor cost Transferred $832,200 of work in process to finished goods Sold goods with a cost of $789,800 Sold goods for $1,413,700 Incurred $339,600 of selling expenses Incurred $126,400 of administrative expenses a. Prepare the July income statement for Focauit. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 20Y2 Revenues Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Income from operations Feedback 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