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 $270,000 of materials.
2. Used $194,400 of direct materials in production.
3. Incurred $486,000 of direct labor wages.
4. Incurred $194,400 of factory overhead.
5. Transferred $820,800 of work in process to finished goods.
6. Sold goods for $1,296,000.
7. Sold goods with a cost of $729,000.
8. Incurred $232,200 of selling expense.
9. Incurred $135,000 of administrative expense.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

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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:
DATA
Materials purchased	$270,000
Direct materials used in production	194,400
Direct labor wages	486,000
Factory overhead	194,400
Work in process transferred to finished goods	820,800
Sales revenue	1,296,000
Cost of goods sold	729,000
Selling expense	232,200
Administrative expense	135,000
Select the corresponding accounts in the dropdowns in cells B21:B23, B25:B26, B28. Using formulas and cell references, perform the required analysis, and input your answers into the green cells in the C and D columns. Transfer the numeric results for the green entry cells (D21:D23, C25:C26, D27:D28, C31:C33) into the appropriate fields in CNOWv2 for grading.
	Sorensen Manufacturing Company
	Income Statement
	For the Month Ended January 31	Formulas
a.
	Operating expenses:
	Total operating expenses
	Inventory balances on January 31:
b.	Materials
	Work in process
	Finished goods

Using the information given, complete the following:

Prepare the January income statement for Sorensen Manufacturing Company. Round your answers to the nearest dollar.

Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
Administrative expensesGross profitRevenuesSelling expenses		$fill in the blank 3
Administrative expensesCost of goods soldFinished goodsWork in process		fill in the blank 5
Administrative expensesGross profitNet incomeSelling expenses		$fill in the blank 7
Operating expenses:
Cost of goods soldMaterialsRevenuesSelling expenses	$fill in the blank 9
Administrative expensesCost of goods soldGross profitWork in process	fill in the blank 11
Total operating expenses		fill in the blank 12
Net incomeNet loss		$fill in the blank 14

Determine the inventory balances at the end of the first month of operations. Round your answers to the nearest dollar.

Sorensen Manufacturing Company
Inventory Balances
For the Month Ended January 31
Inventory balances on January 31:
Materials	$fill in the blank 15
Work in process	$fill in the blank 16
Finished goods	$fill in the blank 17