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 $$133,800$ of materials.

b$.$ Used $$94,100$ of direct materials in production.

c$.$ Incurred $$184,480$ of direct labor wages.

d$.$ Incurred $$215,200$ of factory overhead.

e$.$ Transferred $$425,880$ of work in process to finished goods.

f$.$ Sold goods for $$664,000.$

g$.$ Sold goods with a cost of $$360,000.$

h$.$ Incurred $$85,460$ of selling expense.

i$.$ Incurred $$71,800$ of administrative expense.

Required:

Using the information given, complete the following:

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

Amount Descriptions

Gross profit

Net income

Net loss

Total operating expenses

b$.$ Determine the inventory balances at the end of the first month of operations.