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 $441,700 of materials. Used $379,900 of direct materials in production. Incurred $328,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $931,500 of work in process to finished goods. Sold goods with a cost of $874,600. Revenues earned by selling bikes, $1,565,500. Incurred $376,100 of selling expenses. Incurred $139,900 of administrative expenses. 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 Amount Line Item Description Revenues Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Amount $ 1

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 $441,700 of materials. - Used $379,900 of direct materials in production. - Incurred $328,000 of direct labor wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred $931,500 of work in process to finished goods. - Sold goods with a cost of $874,600. - Revenues earned by selling bikes, $1,565,500. - Incurred $376,100 of selling expenses. - Incurred $139,900 of administrative expenses. a. Prepare the income statement for Rockhaven Biking Inc. for the month ending February 28. . Prepare the income statement for Rockhaven Blking Inc. for the month ending February 28. Determine the inventory balances on February 28 , the end of the first month of operations