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 $58,000 of materials.
Used $44,700 of direct materials in production.
Incurred $66,700 of direct labor wages.
Incurred $94,000 of factory overhead.
Transferred $156,000 of work in process to finished goods.
Sold goods for $279,000.
Sold goods with a cost of $124,100.
Incurred $71,300 of selling expense.
Incurred $31,300 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company. Determine the inventory balances at the end of the first month of operations 
