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

a. Purchased 65,000 of materials

b. used 50,000 of direct materials in production

c. Incurred 75,000 of direct labor wages

d. Incurred 105,000 of factory overhead

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

f. Sold goods with a cost of 140,000

g. Earned revenues of 310,000

h Incurred 80,000 of selling expenses

i. Incurred 35,000 of administrative expenses

1. Prepare the March income statement for Gantt Manufacturing company.

2. Determine the inventory balances at the end of the first month of operations.