Financlal Statements of a Manufacturing Fimm

The following events took place for Rushmore Baking Inc. during February, the flist month of operatuons as a producer of road bikes:

Purchased $$250,100$ of materlals.

Used $$215,100$ of direct materials in production.

Incurred $$184,000$ of direct labor wages.

Applled factory overhead at a rabe of $80\%$ of direct labor cost.

Transferred $$524,400$ of work in process to finkshed goods.

Sold goods with a cost of $$497,700.$

Revenues earned by selling bikes, $$890,900.$

Incurred $$214,000$ of selling expenses.

Incurred $$79,600$ of administrative expenses.

a$.$ Prepare the Income stabement for Rushmore Biking Inc. for the month ending February $28.$ 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 administratlve expenses $$

b$.$ Determine the inventory balances on February $28,$ the end of the first month of operations.

Materlals Inventory, February $28$

Work in process Inventory, February $28$

$$

$$

$ $$

$*..$