Financial Statements of a Manufacturing Firm

The following events took place for Rockhaven Biking Inc. during February, the first month of operations as a producer of road bikes:

$$ Purchased $$426,200$ of materials.

$$ Used $$366,500$ of direct materials in production.

$$ Incurred $$316,000$ of direct labor wages.

$$ Applied factory overhead at a rate of $70\%$ of direct labor cost.

$$ Transferred $$867,600$ of work in process to finished goods.

$$ Sold goods with a cost of $$839,600.$

$$ Revenues earned by selling bikes, $$1,502,900.$

$$ Incurred $$361,000$ of selling expenses.

$$ Incurred $$134,300$ of administrative expenses.

Question Content Area

a$.$ Prepare the income statement for Rockhaven Biking Inc. for the month ending February $28.$

Rockhaven Biking Inc.

Income Statement

For the Month Ended February $28$

Line Item Description Amount Amount

$$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

Selling and administrative expenses: blank blank

$$-$ Select $-$

$-$ Select $-$

blank

Total selling and administrative expenses blank Total selling and administrative expenses

$$-$ Select $-$

Question Content Area

b$.$ Determine the inventory balances on February $28,$ the end of the first month of operations.

Materials inventory, February $28$ fill in the blank $1$ of $3$$

Work in process inventory, February $28$ fill in the blank $2$ of $3$$

Finished goods inventory, February $28$ fill in the blank $3$ of $3$$