Financial statements of a manufacturing firm The following events took place for Sorensen Manufacturing Company during January, the first a. Purchased $254,000 of materials. b. Used $182,880 of direct materials in production. c. Incurred $457,200 of direct labor wages. d. Incurred $182,900 of factory overhead. e. Transferred $772,200 of work in process to finished goods. f. Sold goods for $1,219,200. g. Sold goods with a cost of $685,800. h. Incurred $218,400 of selling expense. i. Incurred $127,000 of administrative expense. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, per X Open spreadsheet Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Round your an Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues 1,219,200 Cost of goods sold 685,800 Gross profit 533,400 Operating expenses: Selling expenses 218,400 Administrative expenses 127,000 V Total operating expenses 345,400 Net income 188,000 b. Determine the inventory balances at the end of the first month of operations. Round your ans Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials 71,120 Work in process 50,780 Finished goods X Feedback Check My Work a. Use "f, g, h, and i" in preparing the income statement