The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:•Purchased $400,000 of materials.•Used $344,000 of direct materials in production.•Incurred $296,000 of direct labor wages.•Applied factory overhead at a rate of 70% of direct labor cost.•Transferred $813,300 of work in process to finished goods.•Sold goods with a cost of $800,000.•Revenues earned by selling bikes, $1,432,000.•Incurred $344,000 of selling expenses.•Incurred $128,000 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method.