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 $339,800 of materials.

Used $292,200 of direct materials in production.

Incurred $252,000 of direct labor wages.

Applied factory overhead at a rate of 75% of direct labor cost.

Transferred $703,900 of work in process to finished goods.

Sold goods with a cost of $672,800.

Revenues earned by selling bikes, $1,204,300.

Incurred $289,300 of selling expenses.

Incurred $107,600 of administrative expenses

.b.Determine the inventory balances on February 28, the end of the first month of operations.

Materials inventory, February 28

Work in process inventory, February 28

Finished goods inventory, February 28