Chapter 19 Sample Problem (Similar to EX 19-13) ABC, Inc had the following events in February, 2022, the first month of operations as a manufacturer of skateboards Purchase $525,000 materials Used $325,000 materials in production There were $267,000 direct labor wages Factor Overhead was applied at 80% of direct labor costs . $600,000 of Work in process was transferred to finished goods Sold goods for $1,200,000 Sold goods with cost of $573,000 Selling expenses were $ 110,000 Administrative Expenses were $89,00 Instructions: 1) Prepare the Feb income statement 2) Determine the inventory balances at the end of February