The following events took place for Chi-Lite Inc. during June 2016, the first month of operations as a producer of road bikes

Purchased $397,940 of materials.

Used $343,700 of direct materials in production.

Incurred $290,100 of direct labor wages.

Applied factory overhead at a rate of 80% of direct labor cost.

Transferred $813,970 of work in process to finished goods.

Sold goods with a cost of $799,480. Sold goods for $1,405,850.

Incurred $319,590 of selling expenses.

Incurred $125,080 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. B. Determine the inventory balances at the end of the first month of operations.

B. Determine the inventory balances at the end of the first month of operations.

Materials inventory, June 30
Work in process inventory, June 30
Finished goods inventory, June 30