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

Purchased $360,000 of materials.

Used $325,900 of direct materials in production.

Incurred $93,700 of direct labor wages.

Applied factory overhead at a rate of 32% of direct labor cost.

Transferred $426,300 of work in process to finished goods.

Sold goods with a cost of $405,700.

Revenues earned by selling bikes, $671,200.

Incurred $136,500 of selling expenses.

Incurred $66,400 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.

Open spreadsheet

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
Cost of Goods SoldFactory OverheadFinished GoodsGross ProfitOperating IncomeRevenues				$fill in the blank 3
Cost of Goods SoldFactory OverheadMaterialsOperating IncomeSelling ExpensesRevenues				fill in the blank 5
Administrative ExpensesFactory OverheadGross ProfitOperating IncomeRevenuesWork in Process				$fill in the blank 7
Selling and Administrative Expenses:
Cost of Goods SoldFactory OverheadFinished GoodsMaterialsRevenuesSelling Expenses		$fill in the blank 9
Administrative ExpensesDirect LaborMaterialsRevenuesWork in Process		fill in the blank 11
Total Selling and Administrative Expenses				fill in the blank 12
Cost of Goods ManufacturedFinished GoodsMaterialsOperating IncomeWork in Process				$fill in the blank 14

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	$fill in the blank 15
Work in process inventory, February 28	$fill in the blank 16
Finished goods inventory, February 28	$fill in the blank 17

Answer rating: 100% (QA)

Heres the income statement for Rushmore Biking for the month ending Februar... View the full answer