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 $308,700 of materials Used $265,500 of direct materials in production Incurred $228,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost Transferred $637,900 of work in process to finished goods Sold goods with a cost of $611,200 Sold goods for $1,094,000 Incurred $262,800 of selling expenses Incurred $97,800 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 20Y2 $ $ 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, July 31 Work in process inventory, July 31 $ Finished goods inventory, July 31 $