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 $232,000 of materials.
Used $167,040 of direct materials in production.
Incurred $417,600 of direct labor wages.
Incurred $167,000 of factory overhead.
Transferred $705,300 of work in process to finished goods.
Sold goods for $1,113,600.
Sold goods with a cost of $626,400.
Incurred $199,500 of selling expense.
Incurred $116,000 of administrative expense.
Using the information given, complete the following:.
a. Prepare the January 2014 income statement for LAE Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.