The following events took place for Migliozzi Inc. during July, 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 July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Be sure to complete the statement heading. Refer to the list of Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. Colons (:) will fill in where needed.

b.

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