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 $250,000 of materials. b. Used $180,000 of direct materials in production. c. Incurred $450,000 of direct labor wages. d. Incurred $180,000 of factory overhead. e. Transferred $760,000 of work in process to finished goods. f. Sold goods for $1,200,000. g. Sold goods with a cost of $675,000. h. Incurred $215,000 of selling expense. 1. Incurred $125,000 of administrative expense. 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