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 $$317,800$ of materials.

Used $$273,300$ of direct materials in production.

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

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

Transferred $$658,800$ of work in process to finished goods.

Sold goods with a cost of $$626,100.$

Revenues earned by selling bikes, $$1,120,700.$

Incurred $$269,200$ of selling expenses.

Incurred $$100,200$ of administrative expenses.

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

Rockhaven Biking Inc.

Income Statement

For the Month Ended February $28$

Selling and 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 $28$