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 $480,000 of materials. Used $434,500 of direct materials in production. Incurred $125,000 of direct labor wages. Applied factory overhead at a rate of 44% of direct labor cost. Transferred $582,700 of work in process to finished goods. Sold goods with a cost of $554,500. Revenues earned by selling bikes, $917,400. Incurred $186,500 of selling expenses. Incurred $90,700 of administrative expenses. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.