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 $314,300 of materials. Used $270,300 of direct materials in production. Incurred $232,000 of direct labor wages. Applied factory overhead at a rate of 80% of drect labor cost. Transferred $660,400 of work in process to finished goods. Sold goods with a cost of $625,500. Sold goods for $1,119,600 Incurred $269,000 of selling expenses. * Incurred $100,100 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 Cost of goods sold Gross profit v Selling expenses Administrative expenses Income from operations Foodback Check My work Revenues less the cost of goods sold is equal to gross profit. Gross profit less the selling and administrative expenses is equal to the income from operations. b. Determine the inventory balances at the end of the first month of operations. Materials inventory Work in process inventory Finished goods inventory Feedback