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 $481,100 of materials.
	Used $413,700 of direct materials in production.
	Incurred $356,000 of direct labor wages.
	Applied factory overhead at a rate of 80% of direct labor cost.
	Transferred $1,012,300 of work in process to finished goods.
	Sold goods with a cost of $962,200.
	Sold goods for $1,722,300.
	Incurred $413,700 of selling expenses.
	Incurred $154,000 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
Revenues		$
Cost of Goods Sold
Gross Profit		$
Selling and Administrative Expenses:
Selling Expenses	$
Administrative Expenses
Total Selling and Administrative Expenses
Income from Operations		$