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 $287,600 of materials. Used $247,300 of direct materials in production. Incurred $212,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $603,700 of work in process to finished goods. Sold goods with a cost of $572,300. Revenues earned by selling bikes, $1,024,400. Incurred $246,100 of selling expenses. Incurred $91,600 of administrative expenses.