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 $185,300 of materials. - Used $159,400 of direct materials in production. - Incurred $136,000 of direct laboc wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred 5388,000 of work in process to finished goods. - Sold goods with a cost of $365,000. - Revenues earned by selling bikes, $653,400. - Incurred $157,000 of selling expenses. - Incurred $58,400 of administrative expenses. a. Prepare the income statement for Rockhaven Biking Inc, for the month ending February 28 . - Incurred \$136,000 of direct labor wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred $388,000 of work in process to finished goods. - Sold goods with a cost of $365,000. - Revenues earned by selling bikes, $653,400. - incurred $157,000 of selling expenses. - Incurred $58,400 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