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 $378,900 of materials. - Used $325,900 of direct materials in production. - Incurred $280,000 of direct labor wages. - Applied factory overhead at a rate of 75% of direct labor cost. - Transferred $783,300 of work in process to finished goods. - Sold goods with a cost of $750,200. - Revenues earned by selling bikes, \$1,342,900. - Incurred $322,600 of selling expenses. - Incurred $120,000 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