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:

a$.$ Purchased $$250,000$ of materials.

b$.$ Used $$180,000$ of direct materials in production.

c$.$ Incurred $$450,000$ of direct labor wages.

d$.$ Incurred $$180,000$ of factory overhead.

e$.$ Transferred $$760,000$ of work in process to finished goods.

f$.$ Sold goods for $$1,200,000.$

g$.$ Sold goods with a cost of $$675,000.$

h$.$ Incurred $$215,000$ of selling expense.

i$.$ Incurred $$125,000$ 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: