Financial Statements of a Manufacturing Firm The following events took place for Bridger Bikes Inc. during July 2016, the first month of operations, as a producer of road bikes: Purchased $283,600 of materials. Used $243,900 of direct materials in production. Incurred $208,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. Transferred $583,600 of work in process to finished goods. Sold goods with a cost of $561,500. Sold goods for $1,005,100. Incurred $241,400 of selling expenses. Incurred $89,800 of administrative expenses. a. Prepare the July income statement for Bridger Bikes Inc. Assume that Bridger Bikes uses the perpetual inventory method. Bridger Bikes Inc. Income Statement For the Month Ended October 31, 2046 Revenues Cost of goods sold Gross profit $ Selling expenses Administrative expenses Income from operations b. Determine the inventory balances at the end of the first month of operations. Materials inventory 39,700 Work in process inventory