Financial Statements of a Manufacturing Firm The following events took place for LAE Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors a. Purchased $56,500 of materials b. Used $43,500 of direct materials in production. c. Incurred $65,000 of direct labor wages. d. Incurred $91,500 of factory overhead e. Transferred $152,000 of work in f. Sold goods with a cost of $120,900 to finished goods. Earned revenues of $271,800 Incurred $69,500 of selling expenses i. Incurred $30,500 of administrative expenses. Using the information given, complete the following a. Prepare the January 2016 income statement for LAE Manufacturing Company LAE Manufacturing Company ncome Statement For the Month Ended J 31, 2016 Cost of goods sold Administrative expenses Operating expenses: 271,800 120,900 30,500 Selling expenses 69,500 30,500 Total operating expenses Net income b. Determine the inventory balances at the end of the first month of operations. LAE Manufacturing Company Inventory Balances For the Month Ended J 31, 2016 Inventory balances on January 31, 2016: Work in process Finished goods