Reference no: EM133106921

Question - 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 $224,000 of materials.

2. Used $161,280 of direct materials in production.

3. Incurred $403,200 of direct labor wages.

4. Incurred $161,300 of factory overhead.

5. Transferred $681,000 of work in process to finished goods.

6. Sold goods for $1,075,200.

7. Sold goods with a cost of $604,800.

8. Incurred $192,600 of selling expense.

9. Incurred $112,000 of administrative expense.

Using the information given, complete the following:

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

2. Determine the inventory balances at the end of the first month of operations.