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 $$319,000$ of materials.

Used $$274,300$ of direct materials in production.

Incurred $$236,000$ of direct labor wages.

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

Transferred $$648,500$ of work in process to finished goods.

Sold goods with a cost of $$634,800.$

Revenues earned by selling bikes, $$1,136,300.$

Incurred $$273,000$ of selling expenses.

Incurred $$101,600$ of administrative expenses.

a$.$ Prepare the income statement for Rockhaven Biking Inc, for the month ending February $28.$

Rockhaven Biking Inc.

Income Statement