Financial Statements of a Manufacturing Firm The following events took place for Air Temp Manufacturing Company during January, the first month of its operations as a producer of digital thermometers: Purchased $68,000 of materials. Used $48,000 of direct materials in production. Incurred $92,000 of direct labor wages. Incurred $108,000 of factory overhead. Transferred $217,000 of work in process to finished goods. Sold goods with a cost of $170,000. Earned revenues of $325,000. Incurred $80,000 of selling expense. Incurred $39,000 of administrative expense. b. Determine the inventory balances at the end of the first month of operations. (Show the transactions in T accounts for materials, work in process, and finished goods.) Air Temp Manufacturing Company---Inventory Balances Materials= Work in process= Finished goods=