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 $390,000 of materials. Used $353,000 of direct materials in production. Incurred $101,600 of direct labor wages. Applied factory overhead at a rate of 47% of direct labor cost. Transferred $476,400 of work in process to finished goods. Sold goods with a cost of $453,300. Revenues earned by selling bikes, $750,000. Incurred $152,500 of selling expenses. Incurred $74,200 of administrative expenses.