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 \\( \\$ 314,400 \\) of materials. - Used \\( \\$ 270,400 \\) of direct materials in production. - Incurred \\( \\$ 232,000 \\) of direct labor wages. - Applied factory overhead at a rate of \70 of direct labor cost. - Transferred \\( \\$ 638,200 \\) of work in process to finished goods. - Sold goods with a cost of \\( \\$ 619,400 \\). - Revenues earned by selling bikes, \\( \\$ 1,108,700 \\). - Incurred \\( \\$ 266,300 \\) of selling expenses. - Incurred \\( \\$ 99,100 \\) of administrative expenses. Feedback Theck My Work a. Both product and period costs must be reported on the income statement and are necessary to measure income. b. Determine the inventory balances on February 28 , the end of the first month of operations. Feedback Check My Work b. Set up T accounts for Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts