Total seeking and administrative expenses 329700Operating income ? b. determine the inventory balances on February 28 the end of the first month of operations Materials inventory, February 28 39 500Work in process inventory, February 28 ?Finished goods inventory, February 28 ?

Financial statements of a manufacturing firm The following events took place for Rockhaven Biking Inc. during February, the first month of operations as a producer of road bikes: . Purchased $282,200 of materials. . Used $242,700 of direct materials in production. . Incurred $208,000 of direct labor wages. . Applied factory overhead at a rate of 75% of direct labor cost. Transferred $582,400 of work in process to finished goods. . Sold goods with a cost of $558,800. . Revenues earned by selling bikes, $1,000,300. Incurred $240,300 of selling expenses. Incurred $89,400 of administrative expenses. a. Prepare the income statement for Rockhaven Biking for the month ending February 28. Rockhaven Biking Inc. Income Statement For the Month Ended February 28 Line Item Description Amount Amount Revenues $ 1,000,300 Cost of goods sold 558,800 Gross profit 441,500 Selling and administrative expenses: Selling expenses 240,300 Administrative expenses 89,400