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 $307,900 of materials. - Used $264,800 of direct materials in production. - Incurred $228,000 of direct labor wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred $648,200 of work in process to finished goods. - Sold goods with a cost of $609,600. - Revenues earned by selling bikes, $1,091,200. - Incurred $262,100 of selling expenses. - Incurred $97,500 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