Ef eBook 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 $366,500 of materials. Used $315,200 of direct materials in production. Incurred $272,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $772,600 of work in process to finished goods. Sold goods with a cost of $725,700. Revenues earned by selling bikes, $1,299,000. Incurred $312,100 of selling expenses. Incurred $116,100 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 20. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Revenues Rushmore Biking Inc. Income Statement For the Month Ended February 20 Cost of goods sold Gross profit Check My Work 1.299,000 725.700 573.300 Previous 12:42 PM 1/30/2021