Financial Statements of a Manufacturing Firm The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: Purchased $400,000 of materials. Used $343,750 of direct materials in production. Incurred $295,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. Transferred $815,000 of work in process to finished goods. Sold goods with a cost of $789,000. Sold goods for $1,400,000. Incurred $316,000 of selling expenses. Incurred $125,000 of administrative expenses. a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Chi-Lite Inc. Income Statement For the Month Ended June 30 Revenues Cost of Goods Sold DOO Gross Profit Selling and Administrative Expenses: Selling Expenses 316,000 Administrative Expenses 125,000 Total Selling and Administrative Expenses Income from Operations OO Feedback Check My Work a. Both product and period costs must be reported on the income statement and are necessary to 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