Financial statements of a manufacturing firmThe following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:Purchased $$225,000$ of materials.Used $$162,000$ of direct materials in production.Incurred $$405,000$ of direct labor wages.Incurred $$162,000$ of factory overhead.Transferred $$684,000$ of work in process to finished goods.Sold goods for $$1,080,000.$Sold goods with a cost of $$607,500.$Incurred $$193,500$ of selling expense.Incurred $$112,500$ of administrative expense.

Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income 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 $