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 $42,200 of materials. b. Used $32,500 of direct materials in production. c. Incurred $48,500 of direct labor wages. d. Incurred $68,400 of factory overhead. e. Transferred $113,500 of work in process to finished goods. f. Sold goods for $203,000. g. Sold goods with a cost of $90,300. h. Incurred $51,900 of selling expense. 1. Incurred $22,800 of administrative expense. a. 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 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