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 $471,600 of materials. Used $405,600 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 $957,300 of work in process to finished goods Sold goods with a cost of $933,800. Revenues earned by selling bikes, $1,671,500 Incurred $401,500 of selling expenses Incurred $149,400 of administrative expenses a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 20. Assume that Rushmore Biking Inc. uses the perpetua inventory method a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 23. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses: Total selling and ade and administrative expenses b. Determine the inventory balances on February 26, the end of the Fest month, of operatora. Materials inventory, February 28 Work in process inventory, February 28 Finished goods inventory, February 28