The following events took place for Rockhaven Biking Inc. during February, the first month of operations as a producer of road bikes:

$$ Purchased $$470,000$ of materials.

$$ Used $$425,400$ of direct materials in production.

$$ Incurred $$122,400$ of direct labor wages.

$$ Applied factory overhead at a rate of $44\%$ of direct labor cost.

$$ Transferred $$570,600$ of work in process to finished goods.

$$ Sold goods with a cost of $$543,000.$

$$ Revenues earned by selling bikes, $$898,400.$

$$ Incurred $$182,700$ of selling expenses.

$$ Incurred $$88,800$ of administrative expenses.

a$.$ Prepare the income statement for Rockhaven Biking Inc. for the month ending February $28.$

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 $28$