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he following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 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     $- Select -     - Select -     $- Select - Operating expenses:       $- Select -     - Select -   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

he following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 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     $- Select -     - Select -     $- Select - Operating expenses:       $- Select -     - Select -   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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $250,000 of materials.
  2. Used $180,000 of direct materials in production.
  3. Incurred $450,000 of direct labor wages.
  4. Incurred $180,000 of factory overhead.
  5. Transferred $760,000 of work in process to finished goods.
  6. Sold goods for $1,200,000.
  7. Sold goods with a cost of $675,000.
  8. Incurred $215,000 of selling expense.
  9. Incurred $125,000 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
 
   $- Select -
 
   - Select -
 
   $- Select -
Operating expenses:    
 
 $- Select -  
 
 - Select -  
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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