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 $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 $fill in the blank 19422cfcefe4f93_2 fill in the blank 19422cfcefe4f93_4 $fill in the blank 19422cfcefe4f93_6 Operating expenses: $fill in the blank 19422cfcefe4f93_8 fill in the blank 19422cfcefe4f93_10 Total operating expenses fill in the blank 19422cfcefe4f93_11 $fill in the blank 19422cfcefe4f93_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 b8223804507ffa4_1 Work in process fill in the blank b8223804507ffa4_2 Finished goods fill in the blank b8223804507ffa4_3 Check My Work4 more Check My Work uses remai

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 9E: Financial statements of a manufacturing firm The following events took place for Sorensen...

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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 $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
		$fill in the blank 19422cfcefe4f93_2
		fill in the blank 19422cfcefe4f93_4
		$fill in the blank 19422cfcefe4f93_6
Operating expenses:
	$fill in the blank 19422cfcefe4f93_8
	fill in the blank 19422cfcefe4f93_10
Total operating expenses		fill in the blank 19422cfcefe4f93_11
		$fill in the blank 19422cfcefe4f93_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 b8223804507ffa4_1
Work in process	fill in the blank b8223804507ffa4_2
Finished goods	fill in the blank b8223804507ffa4_3

Check My Work4 more Check My Work uses remai

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