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
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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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:
- 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.
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.
Inventory Balances
For the Month Ended January 31
| Inventory balances on January 31: | |
| Materials | |
| Work in process | |
| Finished goods |
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