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 $$390,000$ of materials.

Used $$353,000$ of direct materials in production.

Incurred $$101,600$ of direct labor wages.

Applied factory overhead at a rate of $44\%$ of direct labor cost.

Transferred $$473,500$ of work in process to finished goods.

Sold goods with a cost of $$450,600.$

Revenues earned by selling bikes, $$745,500.$

Incurred $$151,600$ of selling expenses.

Incurred $$73,700$ 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 Rockhaven Biking Inc. for the month ending February $28.$

Rockhaven Biking Inc.

Income Statement

For the Month Ended February $28$

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 $28$

$