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 $320,000 of materials. Used $289,700 of direct materials in production. Incurred $83,300 of direct labor wages. Applied factory overhead at a rate of 32% of direct labor cost. Transferred $379,000 of work in process to finished goods. Sold goods with a cost of $360,700. Revenues earned by selling bikes, $596,800. Incurred $121,300 of selling expenses. Incurred $59,000 of administrative expenses. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. per present 596,00 360.700 a. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar Rushmore Biking Inc. Income Statement For the Month Ended February 28 RSS Cesto God Sed Gross Petit Selling and Administrative Expenses: 121.300 Administrative RR 59,000 Total Selling and Administrative Expenses 180.00 Operatin. Income b. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar. Materials inventory, February 28 Work in proces inventory, February 285 Finished goods inventory, February 21 a. Both product and period costs must be reported on the income statement and are necessary to measure income. b. Set up T accounts for materials inventory, work in process inventory, and finished goods inventory accounts. 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 $235.500 of materia Used 5202,500 Grect material production incurred 5176.000 of director wages Applied factory overhead started of direct labee cost Transferred $480,100 of work in process to fristed goods Sold goods with a cost of $460.300. . Revenues camed by sing bikes, 1834,700 Incred $200.500 of experts Inred 74.000 of senses a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking The Income Statement For the Month Ended February 28 Rex Costa GENSI Sling and administrative expens Seli Administratie Tot eling and more expenses 1. Detrating income Feedback Chea a. Both product and period costs must be reported on the income statement and are necessary to measure income. b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory. February 28 good mentors. 28 Feedback * b. Set up T accounts for Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts. Feedback Parry| Chapter 16 Homework (Application 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: Purchase 5235.500 of materiale Use 5202.500 of direct met Incurred $126.000 af director . Applied factory overate of of director Transferred 5490.100 of work in process to finished 2000 Sold goods WIN a R$466.00 Reverwes earned ty sing bikes 8.00 Incurred 200.500 of expenses + Incurred 576,600 of administrative penes a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Big Time Income Statement for the Month Ended February 28 Costa Selling and administratore Administrative senses Total de b. Determine the inventory balances on February 28, the end of the first month of operations. Mentorbry28 work in processor February Finished goods inventory, February 28 b. Set up T accounts for Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts