Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the a. Purchased $50,400 of materials. b. Used $38,800 of direct materials in production. c. Incurred $58,000 of direct labor wages. d. Incurred $81,600 of factory overhead. e. Transferred $135,600 of work in process to finished goods. f. Sold goods for $242,400. g. Sold goods with a cost of $107,900. h. Incurred $62,000 of selling expense. i. Incurred $27,200 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues 242,400 Cost of goods sold 107.900 Gross profit 134,500 Operating expenses: Selling expenses 62,000 Administrative expenses 27,200 Total operating expenses 89.200 Net income Check My Work All work saved. ebook Show Me How Revenues 242,400 Cost of goods sold 107,900 Gross profit 134,500 Operating expenses: Selling expenses 62,000 Administrative expenses 27,200 Total operating expenses 89,200 Net income b. Determine the inventory balances at the end of the first month of operations.