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 $387,100 of materials. Used $332,900 of direct materials in production. Incurred $288,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. Transferred $803,400 of work in process to finished goods. Sold goods with a cost of $774,200. Revenues earned by selling bikes, $1,385,800. Incurred $332,900 of selling expenses. Incurred $123,900 of administrative expenses. 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 Line Item Description Revenues Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Amount 332,900 123,900 Amount 1,385,000 774,200 611.600