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 $273,000 of materials.
2. Used $196,560 of direct materials in production.
3. Incurred $491,400 of direct labor wages.
4. Incurred $196,600 of factory overhead.
5. Transferred $829,900 of work in process to finished goods.
6. Sold goods for $1,310,400.
7. Sold goods with a cost of $737,100.
8. Incurred $234,800 of selling expense.
9. Incurred $136,500 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.

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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 expenses Gross profit Revenues Selling expenses Revenues		$fill in the blank 3
Administrative expenses Cost of goods sold Finished goods Work in process Cost of goods sold		fill in the blank 5
Administrative expenses Gross profit Net income Selling expenses Gross profit		$fill in the blank 7
Operating expenses:
Cost of goods sold Materials Revenues Selling expenses Selling expenses	$fill in the blank 9
Administrative expenses Cost of goods sold Gross profit Work in process Administrative expenses	fill in the blank 11
Total operating expenses		fill in the blank 12
Net income Net loss Net income		$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

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1. Use "f, g, h, and i" in preparing the income statement.
2. Show the transactions in T accounts for materials, work in process, and finished goods.