Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead.. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. 9. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. 1. Incurred $80,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. Digital Vibe 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 875,000 $25,000 $350,000 125,000 80,000 205,000 145,000 Previo b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations. Digital Vibe Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials Work in process Finished goods