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 $$259,100$ of materials.

Used $$222,800$ of direct materials in production.

Incurred $$192,000$ of direct labor wages.

Applied factory overhead at a rate of $70\%$ of direct labor cost.

Transferred $$527,200$ of work in process to finished goods.

Sold goods with a cost of $$515,600.$

Revenues earned by selling bikes, $$922,900.$

Incurred $$221,700$ of selling expenses.

Incurred $$82,500$ 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 $28$

Selling and administrative expenses: