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 $410,200 of materials. Used $352,800 of direct materials in production. Incurred $304,000 of direct labor wages. Applied factory overhead at a rate of 70% of direct labor cost. Transferred $834,800 of work in process to finished goods. Sold goods with a cost of $816,300. Revenues earned by selling bikes,