1. 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:

   1. Purchased $48,300 of materials.
   2. Used $37,200 of direct materials in production.
   3. Incurred $55,500 of direct labor wages.
   4. Incurred $78,200 of factory overhead.
   5. Transferred $129,900 of work in process to finished goods.
   6. Sold goods for $232,300.
   7. Sold goods with a cost of $103,400.
   8. Incurred $59,400 of selling expense.
   9. Incurred $26,100 of administrative expense.

   Using the information given, complete the following:

   a. Prepare the January income statement for Sorensen Manufacturing Company.

   Sorensen Manufacturing Company
   Income Statement
   For the Month Ended January 31
   		$
   		$
   Operating expenses:
   	$
   Total operating expenses
   		$

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

   Sorensen Manufacturing Company
   Inventory Balances
   For the Month Ended January 31
   Inventory balances on January 31:
   Materials	$
   Work in process
   Finished goods