< Financial Statements of a Manufacturing Firm &inprogress false The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of roac Purchased $555,900 of materials. Used $478,100 of direct materials in production. Incurred $412,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $1,170,900 of work in process to finished goods. Sold goods with a cost of $1,106,200. Revenues earned by selling bikes, $1,980,100. Incurred $475,700 of selling expenses. Incurred $177,000 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking uses the perpetual inventory method. Revenues Rushmore Biking Inc. Income Statement For the Month Ended February 28 Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses 000 ssignment/la Assight < Income Statement Revenues For the Month Ended February 28 Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses. Total selling and administrative expenses Feedback Check My Work a. Both product and period costs must be reported on the income statement and are necessary to b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory, February 28 45,500 X Work in process inventory, February 28 31,500 X Finished goods inventory, February 28 28,000 X