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:

Purchased $283,000 of materials. Used $203,760 of direct materials in production. Incurred $509,400 of direct labor wages. Incurred $203,800 of factory overhead. Transferred $860,300 of work in process to finished goods. Sold goods for $1,358,400. Sold goods with a cost of $764,100. Incurred $243,400 of selling expense. Incurred $141,500 of administrative expense.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. 2. Determine the inventory balances at the end of the first month of operations