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 $63,700 of materials.
2. Used $49,000 of direct materials in production.
3. Incurred $73,300 of direct labor wages.
4. Incurred $103,200 of factory overhead.
5. Transferred $171,400 of work in process to finished goods.
6. Sold goods for $306,400.
7. Sold goods with a cost of $136,300.
8. Incurred $78,400 of selling expense.
9. Incurred $34,400 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