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 44% of direct labor cost. Transferred $473,500 of work in process to finished goods. Sold goods with a cost of $450,600. Revenues earned by selling bikes, $745,500. Incurred $151,600 of selling expenses. Incurred $73,700 of administrative expenses.