labor cos). mead applied to all four jobs (a single overhead rate is used based on direct D. Completion of Jobs 301 and 302. EX 16-14 Financial statements of a manufacturing firm e following events took place for Chi-Lite Inc. during June, the first month of operations as Obj. 2 a producer of road bikes: . Used $343,750 of direct materials in production. Applied factory overhead at a rate of 75% of direct labor cost. Purchased $400,000 of materials. Incurred $295,000 of direct labor wages. Transferred $815,000 of work in process to finished goods. Sold goods with a cost of $789,000. .Sold goods for $1,400,000. Incurred $316,000 of selling expenses. Incurred $125,000 of administrative expenses. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the inventory method. perpetual . B. Determine the inventory balances at the end of the first month of operations