The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes Purchased $396,730 of materials. Used $343,310 of direct materials in production. Incurred $294,600 of direct labor wages. Applied factory overhead at a rate of 74% of direct labor cost. Transferred $816,250 of work in process to finished goods. Sold goods with a cost of $797,470. Sold goods for $1,409,300. Incurred $318,060 of selling expenses. Incurred $120,840 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