The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes:

	Purchased $264,300 of materials.
	Used $227,300 of direct materials in production.
	Incurred $196,000 of direct labor wages.
	Applied factory overhead at a rate of 75% of direct labor cost.
	Transferred $547,500 of work in process to finished goods.
	Sold goods with a cost of $526,000.
	Sold goods for $941,500.
	Incurred $226,200 of selling expenses.
	Incurred $84,200 of administrative expenses.

a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method.

Chi-Lite Inc. Income Statement For the Month Ended June 30 Revenues Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Selling Expenses Administrative Expenses Total Selling and Administrative Expenses Income from Operations