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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: a. Purchased $237,000 of materials. b. Used $170,640 of direct materials in production. c. Incurred $426,600 of direct labor wages. d. Incurred $170,600 of factory overhead. e. Transferred $720,500 of work in process to finished goods. f. Sold goods for $1,137,600. g. Sold goods with a cost of $639,900. h. Incurred $203,800 of selling expense. i. Incurred $118,500 of administrative expense. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Round your answers to the nearest dollar. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 b. Determine the inventory balances at the end of the first month of operations. Round your answers to the nearest dollar. b. Determine the inventory balances at the end of the first month of operations. Round your answers to the nearest dollar. Feedback Check My Work a. Use " f,g,h, and i " in preparing the income statement. b. Show the transactions in T accounts for materials, work in process, and finished goods. el template - Saved Search (Alt + Q) Home Insert Draw Page Layout Formulas Data Review View Help Arial 10 BAab Currency fx A B C D E F G H Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Formulas a. Revenues Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income Inventory balances on January 31: b. Materials Work in process Finished goods 1 Data+ ulation Mode: Automatic Workbook Statistics Search (b)

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