Homework, Chapter 16 eBook E Print Item 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 $477,300 of materials Used $410,500 of direct materials in production. Incurred $352,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $1,002,300 of work in process to finished goods. . Sold goods with a cost of $940,300. Revenues earned by selling bikes, $1,683,100. . Incurred $404,300 of selling expenses. Incurred $150,400 of administrative expenses. 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 Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses: Total selling and administrative expenses b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory, February 28 Work in process inventory, February 28 S Finished goods inventory, February 28 a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that R Rushmore Biking Inc. Income Statement For the Month Ended February 28 Cost of goods sold Finished goods 9 Gross profit ative expenses: $ Operating income Factory overhead Revenues inistrative expenses b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory, February 28 Work in process inventory, February 28 $ Finished goods inventory, February 28 a. Prepare the income statement for Rushmore Biking Inc. for the month ending Fe Rushmore Biking Inc. Income Statement For the Month Ended February 28 A Ve expenses: Administrative expenses $ Cost of goods sold Gross profit strative expenses Operating income Revenues Work in process Den e Vettory balances on February 28, the end of the first month of opera Materials inventory, February 28 Work in process inventory, February 28 Finished goods inventory, February 28 $ $ $ a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assi Rushmore Biking Inc. Income Statement For the Month Ended February 28 SS Selling and administrative expenses: I] Cost of goods sold To Factory overhead strative expenses Finished goods Materials b. Selling expenses ory balances on February 28, the end of the first month of operations. Ma Work in process ruary 28 $ $ Work in process inventory, February 28 Finished goods inventory, February 28 $ a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. A Rushmore Biking Inc. Income Statement For the Month Ended February 28 $ Selling and administrative expenses: S ative expenses Administrative expenses Cost of goods sold Direct labor Materials balances on February 28, the end of the first month of operations. Revenues y 28 $ Work in process February 28 Finished goods inventory, February 28 Administrative expenses 0 Cost of goods sold Finished goods ve expenses: Operating income Operating loss Work in process strative expenses b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory, February 28 $ Work in process inventory, February 28 $ Finished goods inventory, February 28 $