Labels and Amount Descriptions X Labels For the Month Ended June 30 June 30 Selling and administrative expenses Amount Descriptions Administrative expenses Cost of goods sold Factory overhead Gross profit Income from operations Materials Revenues Selling expenses Total selling and administrative expenses a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations. Materials inventory, June 30 Work in process inventory, June 30 Finished goods inventory, June 30 The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: - Purchased $397,940 of materials. - Used $343,700 of direct materials in production. - Incurred \$290,100 of direct labor wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred $813,970 of work in process to finished goods. - Sold goods with a cost of $799,480. - Sold goods for $1,405,850. - Incurred $319,590 of selling expenses. - Incurred $125,080 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations