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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:

Purchased $42,900 of materials.

Used $33,000 of direct materials in production.

Incurred $49,300 of direct labor wages.

Incurred $69,500 of factory overhead.

Transferred $115,400 of work in process to finished goods.

Sold goods for $206,300.

Sold goods with a cost of $91,800.

Incurred $52,800 of selling expense.

Incurred $23,200 of administrative expense.

Using the information given, complete the following:

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

Sorensen Manufacturing Company Income Statement For the Month Ended January 31

Administrative expensesGross profitRevenuesSelling expenses		$- Select -
Administrative expensesCost of goods soldFinished goodsWork in process		- Select -
Administrative expensesGross profitNet incomeSelling expenses		$- Select -
Operating expenses:
Cost of goods soldMaterialsRevenuesSelling expenses	$- Select -
Administrative expensesCost of goods soldGross profitWork in process	- Select -
Total operating expenses		fill in the blank 53d8b5047fb6026_11
Net incomeNet loss		$- Select -

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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	$fill in the blank 3201dffc9fbffaa_1
Work in process	fill in the blank 3201dffc9fbffaa_2
Finished goods	fill in the blank 3201dffc9fbffaa_3