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 $475,800 of materials. Used 409,200 of direct materials in production, - Incurred $352,000 of direct labor wages. Applied factory overhead at a rate of 70% of direct labor cost. . Transferred $967,300 of work in process to finished goods. Sold goods with a cost of $951,500 Revenues earned by selling bikes, 51.703,400 Incurred $409,200 of selling expenses. Incurred $152.100 of administrative expenses. a. Prepare the income statement for Rushmore Bilding Inc. for the month ending February 28. Assume that Rushmore king Inc. uses the perpetual inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses Tutti agus Revenues earned by selling bikes, $1,703,400. Incurred $409,200 of selling expenses. Incurred $152,300 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Ass Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses: Total 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