Instructions 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 $133,400 of materials. b. Used $94,980 of direct materials in production. c. Incurred $180,320 of direct labor wages. d. Incurred $215,440 of factory overhead. e. Transferred $425,880 of work in process to finished goods. f. Sold goods for $645,000. g. Sold goods with a cost of $368,750. h. Incurred $85,120 of selling expense. i. Incurred $71,400 of administrative expense. Required: Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. b. Determine the inventory balances at the end of the first month of operations. a. Prepare the January income statement for Sorensen Manufacturing Company. Income Statement Instructions 1 2 3 4 (Label) 5 6 7 8 Sorensen Manufacturing Company Income Statement (Label) Inventory Balances b. Using the information given, determine the inventory balances at the end of the first month of operations. Materials $ Work in process $ Finished goods $