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Financial Statements of a Manufacturing Firm

The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

1. Purchased $53,200 of materials.
2. Used $41,000 of direct materials in production.
3. Incurred $61,200 of direct labor wages.
4. Incurred $86,200 of factory overhead.
5. Transferred $143,100 of work in process to finished goods.
6. Sold goods for $255,900.
7. Sold goods with a cost of $113,800.
8. Incurred $65,400 of selling expense.
9. Incurred $28,700 of administrative expense.

Using the information given, complete the following:

Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. b. Determine the inventory balances at the end of the first month of operations