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

• Purchased $390,000 of materials.
• Used $353,000 of direct materials in production.
• Incurred $101,600 of direct labor wages.
• Applied factory overhead at a rate of 43% of direct labor cost.
• Transferred $472,500 of work in process to finished goods.
• Sold goods with a cost of $449,600.
• Revenues earned by selling bikes, $743,900.
• Incurred $151,200 of selling expenses.
• Incurred $73,600 of administrative expenses.

2. 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
   Cost of Goods Sold
   Administrative Expenses
   Selling and Administrative Expenses:
   Selling Expenses
   Administrative Expenses
   Total Selling and Administrative Expenses
   Operating Income

3. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar.

   Materials inventory, February 28
   Work in process inventory, February 28
   Finished goods inventory, February 28