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Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: - Purchased $497,800 of materials. - Used $428,100 of direct materials in production. - Incurred $368,000 of direct labor wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred $1,046,900 of work in process to finished goods. - Sold goods with a cost of $985,600. - Sold goods for $1,764,200. - Incurred $423,800 of selling expenses. - Incurred $157,700 of administrative expenses. a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. b. Determine the inventory balances at the end of the first month of operations