The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $399,560 of materials. Used $342,540 of direct materials in production. Incurred $290,100 of direct labor wages. Applied factory overhead at a rate of 73% of direct labor cost. Transferred $818,820 of work in process to finished goods. Sold goods with a cost of $796,000. Sold goods for $1,400,110. Incurred $313,290 of selling expenses. Incurred $125,090 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.