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.