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 $58,000 of materials.

Used $44,700 of direct materials in production.

Incurred $66,700 of direct labor wages.

Incurred $94,000 of factory overhead.

Transferred $156,000 of work in process to finished goods.

Sold goods for $279,000.

Sold goods with a cost of $124,100.

Incurred $71,300 of selling expense.

Incurred $31,300 of administrative expense.

Using the information given, complete the following:

a. Prepare the January income statement for Sorensen Manufacturing Company. Determine the inventory balances at the end of the first month of operations