Question - The following events took place for Salsa Inc. during May 2010, the first month of operations as a producer of road bikes:

• Purchased $244,000 of materials.
• Used $210,000 of direct materials in production.
• Incurred $180,000 of direct labor wages.
• Applied factory overhead at a rate of 75% of direct labor cost.
• Transferred $510,000 of work in process to finished goods.
• Sold goods with a cost of $485,000.
• Sold goods for $870,000.
• Incurred $210,000 of selling expenses.
• Incurred $75,400 of administrative expenses.

Negative and subtractive numbers are to be entered as positive numbers.

Prepare the May income statement for Salsa. Assume that Salsa uses the perpetual inventory method.