Financial Statements of a Manufacturing Firm The wing events took place for Rushmore biking Inc. during february, the first month of operations as a producer of road bikes Purchased $198,500 of materials Used $170,700 of direct materials in production Incurred $140,000 of direct labor wages. Applied factory averhead at a rate of 70% of direct labor cost Transferred $405,400 of work in precess to finished goods. Seld goods with a cost of $391,000. Revenues earned by selling bas, 1090,000. Incurred $168.100 of selling expens Incurred $62,000 of administrative expenses Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmoreng Inc. uses the perpetual intury med Rushmore Biking Inc. Income Statement For the Month Ended February 28 Determine the invertory balances on February 28, the end of the first month of operations Materials inventory February 28 work in press inventar, February 29 finished goods inventory Febiary 2 Owl My Work Pu 51 32 ALGO ALGO ALGO Financial Statements of a Manufacturing Firm The following events took place for Pushenore Biking Inc. during February, the first month of operations as a producer of ma Purchased 1190,500 of materials Used $170,700 of direct materials in production +Incurred $140,000 of direct labor wages Applied factory overhead at a rate of 70% Transferred $405,400 of work in a Said goods with a cost of $291.000 of direct labor cost. frished goods Revenues earned by selling bikes, s699,900. Incurred $168,100 of selling expenses Incurred $62,000 of administrative expenses a. Prepare the income statement for Rushmare Biking Inc. for the manth ending February 28. Assume that Rushmore king Dic Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses Total selling and administrative expe b. Determine the inventory balance on February 28, the end of the first math of operations Materials Inventory, February 20 Work in process inventory, February 2 finished goods inventory,bruary 2