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 $260,000 of materials. . Used $187,200 of direct materials in production. . Incurred $468,000 of direct labor wages. . Incurred $187,200 of factory overhead. . Transferred $790,400 of work in process to finished goods. . Sold goods for $1,248,000. . Sold goods with a cost of $702,000. . Incurred $223,600 of selling expense. . Incurred $130,000 of administrative expense. 3010:1060: a. Prepare the January income statement for Sorensen Manufacturing Company. Round your answers to the nearest dollar. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Cost of goods sold ' / :] Gross profit ' / $:] Operating expenses: Selling expenses ' V $:] Administrative expenses ' v' :] Total operating expenses :] b. Determine the inventory balances at the end of the first month of operations. Round your answers to the nearest dollar. Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials $|_ | Work in process $| | Finished goods $|:|