Financial Statements of a Manufacturing Firm The following events took place for Rockhaven Biking Inc. during February, the first month of operations as a producer of road bikes: - Purchased $450,000 of materials. - Used $423,200 of direct materials in production. - Incurred $127,000 of direct labor wages. - Applied factory overhead at a rate of 30% of direct labor cost. - Transferred $565,000 of work in process to finished goods. - Sold goods with a cost of $520,000. - Revenues earned by selling bikes, $935,000. - Incurred $180,000 of selling expenses. - Incurred $95,000 of administrative expenses. a. Prepare the income statement for Rockhaven Biking Inc. for the month ending February 28. b. Determine the inventory balances on February 28 , the end of the first month of operations. Financial Statements of a Manufacturing Firm The following events took place for Rockhaven Biking Inc. during February, the first month of operations as a producer of road bikes: - Purchased $450,000 of materials. - Used $423,200 of direct materials in production. - Incurred $127,000 of direct labor wages. - Applied factory overhead at a rate of 30% of direct labor cost. - Transferred $565,000 of work in process to finished goods. - Sold goods with a cost of $520,000. - Revenues earned by selling bikes, $935,000. - Incurred $180,000 of selling expenses. - Incurred $95,000 of administrative expenses. a. Prepare the income statement for Rockhaven Biking Inc. for the month ending February 28