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 $616,700 of materials. - Used $530,400 of direct materials in production. - Incurred $456,000 of direct labor wages. - Applied factory overhead at a rate of 80% of direct labor cost. - Transferred $1,297,200 of work in process to finished goods. - Sold goods with a cost of $1,233,400. - Revenues earned by selling bikes, $2,207,800. - Incurred $530,400 of selling expenses. - Incurred $197,300 of administrative expenses. a. Prepare the income statement for Rockhaven Biking Inc. for the month ending February 28 . b. Determine the inventory balances on February 28 , the end of the first month of operations