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 $472,800 of materials.
	Used $406,600 of direct materials in production.
	Incurred $348,000 of direct labor wages.
	Applied factory overhead at a rate of 70% of direct labor cost.
	Transferred $958,300 of work in process to finished goods.
	Sold goods with a cost of $940,900.
	Revenues earned by selling bikes, $1,684,200.
	Incurred $404,600 of selling expenses.
	Incurred $150,500 of administrative expenses.

a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method