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 $59,500 of materials. Used $45,800 of direct materials in production. Incurred $68,400 of direct labor wages. Incurred $96,400 of factory overhead. Transferred $160,100 of work in process to finished goods. Sold goods for $286,200. Sold goods with a cost of $127,300. Incurred $73,200 of selling expense. Incurred $32,100 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
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 $59,500 of materials. Used $45,800 of direct materials in production. Incurred $68,400 of direct labor wages. Incurred $96,400 of factory overhead. Transferred $160,100 of work in process to finished goods. Sold goods for $286,200. Sold goods with a cost of $127,300. Incurred $73,200 of selling expense. Incurred $32,100 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $59,500 of materials.
- Used $45,800 of direct materials in production.
- Incurred $68,400 of direct labor wages.
- Incurred $96,400 of factory
overhead . - Transferred $160,100 of work in process to finished goods.
- Sold goods for $286,200.
- Sold goods with a cost of $127,300.
- Incurred $73,200 of selling expense.
- Incurred $32,100 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 |
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