The following events took place for Rushmore Biking Inc. during February Purchased $624,500 of materials. Used $537,100 of direct materials in production. Incurred $464,000 of direct labor wages. Applied factory overhead at a rate of 75% of direct labor cost. Transferred $1,295,100 of work in process to finished goods. Sold goods with a cost of $1,236,500. Revenues earned by selling bikes, $2,213,300. Incurred $531,700 of selling expenses. Incurred $197,800 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month endi perpetual inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Revenues 2,213,300 Cost of goods sold - 1,236,500 Gross profit 976,800 Selling and administrative expenses: Selling expenses 531,700 b. Determine the inventory balances on February 28, the end of the first month of operations. 87,400 Materials inventory, February 28 Work in process inventory, February 28 844,600 X Finished goods inventory, February 28 54,000 X Feedback