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 $235,000 of materials Used $169,200 of direct materials in production.

Incurred $423,000 of direct labor wages.

Incurred $169,200 of factory overhead.

Transferred $714,400 of work in process to finished goods.

Sold goods for $1,128,000.

Sold goods with a cost of $634,500.

Incurred $202,100 of selling expenses.

Incurred $117,500 of administrative expenses.

A.Using the information given, complete the following: Prepare the January income statement for Sorensen Manufacturing Company. Round your answers to the nearest dollar.

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