Financial Statements of a Manufacturing Firm The following events took place for Hushmore king Inc dursng February, the first month operations as producer of road bikes Purchased 1480,000 of materials Used 5434,500 of direct materials in production Incurred $125,000 of direct labor wages. Applied factory overhead at a rate of 40% ofrece labor cost. Transferred $575,000 of work in process to finished goods. Sold goods with a cost of $550.000 Revenues amed by linge, 5910,000 Incurred $185,000 of sing expenses Incurred 100,000 of administrative expenses. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Coat of goods sold Selling and administrative expenses Totalling and administrative expenses b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory, February 26 Work in process inventory, February 28 Finished goods inventory, February 28