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:

Purchased $$46,300$ of materials.

Used $$35,700$ of direct materials in production.

Incurred $$53,200$ of direct labor wages.

Incurred $$75,000$ of factory overhead.

Transferred $$124,500$ of work in process to finished goods.

Sold goods for $$222,700.$

Sold goods with a cost of $$99,100.$

Incurred $$56,900$ of selling expense.

Incurred $$25,000$ of administrative expense.

Using the information given, complete the following:

Question Content Area

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

Sorensen Manufacturing Company

Income Statement

For the Month Ended January $31$

Line Item Description Amount Amount

$$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

Operating expenses:

$$-$ Select $-$

$-$ Select $-$

Total operating expenses Total operating expenses

$$-$ Select $-$

Question Content Area

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 $31$: Amount

Materials $Materials

Work in process Work in process

Finished goods Finished goods