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