The following events took place for Chi-Lite Inc. during June 2016, the first month of operations as a producer of road bikes: o Purchased $400,000 of materials. o Used $343,750 of direct materials in production. o Incurred $295,000 of direct labor wages. o Applied factory overhead at a rate of 75% of direct labor cost. o Transferred $815,000 of work in process to finished goods. o Sold goods with a cost of $789,000. o Sold goods for $1,400,000. o Incurred $316,000 of selling expenses. o Incurred $125,000 of administrative expenses. 10. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. 11. Determine the inventory balances at the end of the first month of operations.

." T a. @The following events took place for Chi-Lite Inc. during June 2016, the first month of operations as a producer of road bikes: 0 Purchased $400,000 of materials. Used $343,750 of direct materials in production. Incurred $295,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. Transferred $815,000 of work in process to nished goods. Sold goods with a cost of $789,000. Sold goods for $1,400,000. Incurred $316,000 of selling expenses. Incurred $1 2 5,0 0 0 of administrative expenses. 0. Prepare the lune income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. 11. Determine the inventory balances at the end of the rst month of operations. HOOOOOOOO