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: a. Purchased $40,500 of materials b. Used $3,200 of direct materials in production cincurred $46,600 of direct labor wages d. Incurred $65.600 of factory overhead e. Transferred 5108,900 of work in process to finished goods Sold goods for 5194,800 0 Sold goods with a cost of $56,700 h. Incurred $49,900 of selling expense Incurred $21.900 of administrative expense Using the information given, complete the following: . Prepare the January income statement for Sorensen Manufacturing Company Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income b. Determine the inventory balances at the end of the first month of operations. Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials Work in process Finished goods