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 $56,900 of materials. Used $43,800 of direct materials in production. Incurred $65,400 of direct labor wages. Incurred $92,200 of factory overhead. Transferred $153,100 of work in process to finished goods. Sold goods for $273,700. Sold goods with a cost of $121,800. Incurred $70,000 of selling expense. Incurred $30,700 of administrative expense. Using the information given, complete the following:

a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 including Operating expenses and Total operating expenses

b. Determine the inventory balances at the end of the first month of operations. Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: including Materials, Work in process, and Finished goods

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