The following events took place for Chaterjee Manufacturing Company during January 2014, the first month of its operations as a producer of digital thermometers:
a. Purchased $ 95,200 of materials.
b. Used $ 67,200 of direct materials in production.
c. Incurred $ 128,800 of direct labor wages.
d. Incurred $ 151,200 of factory overhead.
e. Transferred $ 303,800 of work in process to finished goods.
f. Sold goods with a cost of $ 280,000.
g. Earned revenues of $ 450,000.
h. Incurred $ 65,400 of selling expense.
i. Incurred $ 54,600 of administrative expense.
Using the above information, complete the following:
a. Prepare the January 2014 income statement for Chaterjee Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.