che Tomes D34- Courses CengageNOWv2 | Online te Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased $480,000 of materials. Used $434,500 of direct materials in production. Incurred $125,000 of direct labor wages. Applied factory overhead at a rate of 40% of direct labor cost. Transferred $578,000 of work in process to finished goods. Sold goods with a cost of $550,000. Revenues earned by selling bikes, $910,000. Incurred $185,000 of selling expenses. Incurred $90,000 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method.