The following event took place for Gantt Manufacturing Company during March, the first month of its operations as a producer of digital clocks:

1.Purchased $65,000 of material

2.Used $50,000 of direct materials in production

3.Incurred $75,000 of direct labor wages

4.Incurred $105,000 of factory overhead

5.Transferred $175,000 of work in process to finished goods.

6.Sold goods with a cost of $140,000

7.Earned revenues of $310,000

8.Incurred $80,000 of selling expenses

9.Incurred $35,000 of administrative expenses

(a) Prepare the March income statement for Grantt Manufacturing Company.

(b) Determine the inventory balances at the end of the first month of operations