How would you solve this?

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 $213,400 of materials.
	Used $183,500 of direct materials in production.
	Incurred $156,000 of direct labor wages.
	Applied factory overhead at a rate of 80% of direct labor cost.
	Transferred $445,700 of work in process to finished goods.
	Sold goods with a cost of $420,400.
	Revenues earned by selling bikes, $752,500.
	Incurred $180,800 of selling expenses.
	Incurred $67,300 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.

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
Finished goods inventory, February 28