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: a. Purchased $57,800 of materials. b. Used $44,500 of direct materials in production. C. Incurred $66,500 of direct labor wages. d. Incurred $93,600 of factory overhead. e. Transferred $155,500 of work in process to finished goods. f. Sold goods for $278,000. g. Sold goods with a cost of $123,700. h. Incurred $71,100 of selling expense. i. Incurred $31,200 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 Revenues 278,000 Cost of goods sold 123,700 Gross profit 154,300 Operating expenses: Selling expenses Administrative expenses 71,100 31,200 102,300 Total operating expenses Net income 52,000 Feedback Check My Work a. Use", g, h, andi" in preparing the income statement. h Natarminn tho inuantar balance at the end of the first month of anarations Check My Work Omore Check My Work uses remaining. Previous Next 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: Materials 44,500 x Work in process Finished goods 155,500 x Feedback Check My Work b. Show the transactions in T accounts for materials, work in process, and finished goods. Feedback Check My Work Partially correct