The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased $450,000 of materials. Used $407,300 of direct materials in production. Incurred $117,200 of direct labor wages. Applied factory overhead at a rate of 39% of direct labor cost. Transferred $540,700 of work in process to finished goods. Sold goods with a cost of $514,500. Revenues earned by selling bikes, $851,200. Incurred $173,100 of selling expenses. . Incurred $84,200 of administrative expenses. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Revenues 851,200 Cost of Goods Sold 514,500 Gross Profit 336.700 Check My Work Omore Check My Work uses remaining, Previous Next Open spreadsheet a. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Revenues 851,200 514,500 336,700 Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Selling Expenses Administrative Expenses Total Selling and Administrative Expenses Operating Income 173,100 84,200 257,300 79,400 b. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar 42,700 Materials inventory, February 28 Work in process inventory, February 28 $ Finished goods Inventory, February 28 $ 26,200 Feedback