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 $641,200 of materials. Used $551,400 of direct materials in production. Incurred $476,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $1,351,900 of work in process to finished goods. Sold goods with a cost of $1,282,400. Revenues earned by selling bikes, $2,295,500. Incurred $551,400 of selling expenses. . Incurred $205,200 of administrative expenses.

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 $641,200 of materials. - Used $551,400 of direct materials in production. - Incurred $476,000 of direct labor wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred $1,351,900 of work in process to finished goods. - Sold goods with a cost of $1,282,400. - Revenues earned by selling bikes, $2,295,500. - Incurred $551,400 of selling expenses. - Incurred $205,200 of administrative expenses. b. Determine the inventory balances on February 28 , the end of the first month of operations. Materials inventory, February 28 Work in process inventory, February 28 Finished goods inventory, February 28