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 $66,200 of materials. Used $51,000 of direct materials in production. Incurred $76,100 of direct labor wages. Incurred $107,200 of factory overhead. Transferred $178,100 of work in process to finished goods. Sold goods for $318,400. Sold goods with a cost of $141,700. Incurred $81,400 of selling expense. Incurred $35,700 of administrative expense. Using the information given, complete the following: a.  Prepare the January income statement for Sorensen Manufacturing Company.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

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 $66,200 of materials.
  2. Used $51,000 of direct materials in production.
  3. Incurred $76,100 of direct labor wages.
  4. Incurred $107,200 of factory overhead.
  5. Transferred $178,100 of work in process to finished goods.
  6. Sold goods for $318,400.
  7. Sold goods with a cost of $141,700.
  8. Incurred $81,400 of selling expense.
  9. Incurred $35,700 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
    $fill in the blank 968c70038fb3069_2
    fill in the blank 968c70038fb3069_4
    $fill in the blank 968c70038fb3069_6
Operating expenses:    
  $fill in the blank 968c70038fb3069_8  
  fill in the blank 968c70038fb3069_10  
Total operating expenses   fill in the blank 968c70038fb3069_11
    $fill in the blank 968c70038fb3069_13

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 365e19049f9902c_1
Work in process fill in the blank 365e19049f9902c_2
Finished goods fill in the blank 365e19049f9902c_3
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education