The following events took place for Bridger Bikes Inc. during July 20Y6, the first month of operations, as a producer of road bikes : Purchased $525,900 of materials. Used $452,300 of direct materials in production Incurred $388,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $1,104,700 of work in process to finished goods. Sold goods with a cost of $1,041,300. Sold goods for $1,863,900. Incurred $447,800 of selling expenses. Incurred $166,600 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, 2016 b. Determine the inventory balances at the end of the first month of operations. Materials inventory Work in process inventory