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 $340,000 of materials. Used $329,000 of direct materials in production. Incurred $160,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $590,000 of work in process to finished goods. Sold goods with a cost of $550,000. Sold goods for $918,000. Incurred $132,500 of selling expenses. Incurred $80,000 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 July 31, 20Y6 Revenues $fill in the blank eb7702ffffb9fc2_2 918,000 Cost of goods sold fill in the blank eb7702ffffb9fc2_4 550,000 Gross profit $fill in the blank eb7702ffffb9fc2_6 368,000 Selling expenses $fill in the blank eb7702ffffb9fc2_8 132,500 Administrative expenses fill in the blank eb7702ffffb9fc2_10 80,000 fill in the blank eb7702ffffb9fc2_11 212,500 Income from operations $fill in the blank eb7702ffffb9fc2_13 155,500 Feedback 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 $fill in the blank 15a63ef87f8d046_1 11,000 Work-in-process inventory $fill in the blank 15a63ef87f8d046_2 590,000 Finished goods inventory $fill in the blank 15a63ef87f8d046_3 Feedback