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 $234,000 of materials. Used $201.200 of direct materials in production Incurred $172,000 of direct labor wages Applied factory overhead at a rate of 70% of direct labor cost Transferred 5473,900 of work in process to finished goods. Sold goods with a cost of 546),300 Revenues sarned by selling bikes, 5829,300 Incurred 199,200 of selling expenses Incurred 574,100 of administrative expenses a. Prepare the income statement for Rushmore Biking inc. for the month ending February 23. Assume that Rushmore Biking Inc uses the perpetual inventory method Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses: Total selling and administrative expenses b. Determine the inventory balances on February 28, the end of the first month of operations, Materials inventory, February 28 Work in process inventory, February 28 Finished goods Inventory, February 28 E