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 $370,000 of materials. Used $334,900 of direct materials in production. Incurred $96,300 of direct labor wages. Applied factory overhead at a rate of 50% of direct labor cost. Transferred $454,600 of work in process to finished goods. Sold goods with a cost of $432,600. Revenues earned by selling bikes, $715,700. Incurred $145,500 of selling expenses. Incurred $70,800 of administrative expenses. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar. 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. Round your answers to the nearest dollar. Materials inventory, February 28 Work in process inventory, February 28 s Finished goods inventory, February 28 The following events took place for Rushmore Biking Inc. during February, the first month of operations as a Materials purchased Direct materials Direct labor DATA Factory overhead rate of direct labor cost $370,000 334,900 96,300 50% Transferred work in process to finished goods 454,600 Cost of sold goods 432,600 Revenues earned by selling bikes 715,700 Selling expenses 145,500 Administrative expenses 70,800 Select the corresponding accounts in the dropdowns in cells B21:B23, B25:B26, B28. Using formulas and cell references, perform the required analysis, and input your answers into the C and D columns. Transfer the numeric results for the green entry cells (D21:D23, C25:C26, D27:D28, C30:C32) into the appropriate fields in CNOWv2 for grading. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Formulas Selling and Administrative Expenses: Total Selling and Administrative Expenses b. Materials inventory, February 28 Work in process inventory, February 28 Finished goods inventory, February 28