The following events took place for Sorensen ManufacturingCompany during January, the first month of its operations as aproducer of digital video monitors:

	a. Purchased $138,800 of materials.
	b. Used $94,780 of direct materials in production.
	c. Incurred $181,280 of direct labor wages.
	d. Incurred $213,200 of factory overhead.
	e. Transferred $428,060 of work in process to finishedgoods.
	f. Sold goods for $654,000.
	g. Sold goods with a cost of $360,750.
	h. Incurred $85,320 of selling expense.
	i. Incurred $70,650 of administrative expense.

Required:

Using the information given, complete the following: a. Prepare the January income statement for SorensenManufacturing Company. Be sure to complete the statement heading.Refer to the list of Accounts, Labels and Amount Descriptionsprovided for the exact wording of the answer choices for textentries. A colon (:) will automatically appear if it is required.Enter amounts as positive numbers unless the amount is acalculation that results in a negative amount. For example: Netloss should be negative. Expenses should be positive. b. Determine the inventory balances at the end of the firstmonth of operations.

Accounts
Administrative expenses
Cost of goods sold
Selling expenses
Revenues
Labels
For the Month Ended January 31
For the Year Ended January 31
Amount Descriptions
Gross profit
Net income
Net loss
Total operating expenses

a. Prepare the January income statement for SorensenManufacturing Company. Be sure to complete the statement heading.Refer to the list of Accounts, Labels and Amount Descriptionsprovided for the exact wording of the answer choices for textentries. A colon (:) will automatically appear if it is required.Enter amounts as positive numbers unless the amount is acalculation that results in a negative amount. For example: Netloss should be negative. Expenses should be positive.

Sorensen Manufacturing Company

Income Statement

1
2
3
4	Operating expenses:
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6
7
8

b. Using the information given, determine the inventory balancesat the end of the first month of operations.

	Materials
	Work in process
	Finished goods