Financial statements of a manufacturing firm

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 $249,000 of materials.
Used $179,280 of direct materials in production.
Incurred $448,200 of direct labor wages.
Incurred $179,300 of factory overhead.
Transferred $757,000 of work in process to finished goods.
Sold goods for $1,195,200.
Sold goods with a cost of $672,300.
Incurred $214,100 of selling expense.
Incurred $124,500 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.

  1. Use “f, g, h, and i” in preparing the income statement.
  2. Show the transactions in T accounts for materials, work in process, and finished goods.

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