Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first m Purchased $188,300 of materials. Used $161,900 of direct materials in production. Incurred $140,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. Transferred $390,600 of work in process to finished goods. Sold goods with a cost of $376,600. Revenues earned by selling bikes, $674,100. Incurred $161,900 of selling expenses. Incurred $60,300 of administrative expenses. . a. Prepare the income statement for Rushmore Biking Inc. for the mo inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses: Il Total selling and administrative expenses b. Determine the inventory balances on February 28, the end of the fir Materials inventory, February 28 Work in process inventory, February 28 $ Finished goods inventory, February 28