Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations is producer of rond Purchased $413,700 of materials Used $355,800 of direct materials in production Incurred $300,000 of direct labor wages Applied factory overhead at a rate of 80% of direct labor cost. Transferred 5873.800 of work in process to finished goods Sold goods with a cost of $15,000 Revenues earned by selling bike, $1,450,000 incurred $350,510 of selling expenses Incurred $130.400 of administrative expenses a. te the come statement for Rushmoret og Inc. for the month nding February 28, Assume that usmeren in the perpetual inventory met Rushmore Biking inc. Income Statement For the Month Ended February 28 Seng and drive Previous Incurred $130,400 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses: 8 DOO 00 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 III Work in process inventory, February 28 Finished goods inventory, February 28