The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: Purchased $399,560 of materials Used $342,540 of direct materials in production Incurred $290,100 of direct labor wages Applied factory overhead at a rate of 73% of direct labor cost - Transferred $818,820 of work in process to finished goods - Sold goods with a cost of $796,000 - Sold goods for $1,400,110 - Incurred $313,290 of selling expenses - Incurred $125,090 of administrative expenses Required: A. Prepare the July income statement for Focault. Assume that Focault 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 rst month of operations. For the Month Ended July 31, 20Y2 July 31, 20Y2 Selling and administrative expenses Amount Descriptions Cost of goods sold Factory overhead Gross profit Income from operations Materials Revenues Selling expenses Administrative expenses Total selling and administrative expenses \fIncome statement as per requied format Particulars Amount Amount Revenue(A) 1400110 closing Materials 105433 Cost of goods sold(B) 796000 -796000 Goss profit (A-B-C) 709543 less: Selling Expenses -313290 less:Administration expenses -125090 Income from operations 271163