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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

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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 $137,200 of materials. 
b. Used $94,320 of direct materials in production. c. Incurred $180,640 of direct labor wages. d. Incurred $212,320 of factory overhead. e. Transferred $427,800 of work in  process to finished  goods. f. Sold goods for $655,000. g. Sold goods with a cost of $360,250. h. Incurred $86,160 of selling expense. i. Incurred $70,250 of administrative expense. 
Required: Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Be sure to complete the statement heading. Refer to the list of Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. b. Determine the inventory balances at the end of the first month of operations.