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 $$40,300$ of materials.

Used $$31,000$ of direct materials in production.

Incurred $$46,300$ of direct labor wages.

Incurred $$65,300$ of factory overhead.

Transferred $$108,400$ of work in process to finished goods.

Sold goods for $$193,800.$

Sold goods with a cost of $$86,200.$

Incurred $$49,600$ of selling expense.

Incurred $$21,800$ of administrative expense.

Using the information given, complete the following:

Question Content Area

a$.$ Prepare the January income statement for Sorensen Manufacturing Company.

Sorensen Manufacturing Company

Income Statement

For the Month Ended January $31$

Line Item Description Amount Amount

Revenues

$Revenues

Cost of goods sold

Cost of goods sold

Gross profit

$Gross profit

Operating expenses:

Selling expenses

$Selling expenses

Administrative expenses

Administrative expenses

Total operating expenses Total operating expenses

Net income

$Net income

Question Content Area

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 $31$: Amount

Materials $Materials

Work in process Work in process

Finished goods Finished goods