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 $65,800 of materials. b. Used $50,700 of direct materials in production. c. Incurred $75,700 of direct labor wages. d. Incurred $106,600 of factory overhead. e. Transferred $177,000 of work in process to finished goods. f. Sold goods for $316,500. g. Sold goods with a cost of $140,800. h. Incurred $80,900 of selling expense. i. Incurred $35,500 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