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 $$53,600$ of materials.

b$.$ Used $$41,300$ of direct materials in production.

c$.$ Incurred $$61,600$ of direct labor wages.

d$.$ Incurred $$86,800$ of factory overhead.

e$.$ Transferred $$144,200$ of work in process to finished goods.

f$.$ Sold goods for $$257,800.$

g$.$ Sold goods with a cost of $$114,700.$

h$.$ Incurred $$65,900$ of selling expense.

i$.$ Incurred $$28,900$ 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