Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

answer as soon as possible please!!!! Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1

image text in transcribed
answer as soon as possible please!!!!
Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: $ 42, 150 $13,400 4,600 20.400 Morrison Company Balance Sheet January 1 Assets Cash Raw materials Work in process Finished goods Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 38,400 2.675 182.000 $ 265, 225 $ 9,000 256, 225 $ 265, 225 During January the company completed the following transactions: a. Purchased raw materials on account, $85,200. b. Raw materials used in production, 593,400 (577.600 was direct materials and $15.800 was indirect materials) c. Paid $181300 of salaries and wages in cash ($104,800 was direct labor, $37,650 was indirect labor, and $38,850 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred on account to support production, $33.150. e. Depreciation recorded on property, plant, and equipment, $86,800 (70% related to manufacturing equipment and 30% related to assets that support selling and administration). t. Various selling expenses paid in cash, $28,850. g. Prepaid insurance expired during the month, $1,650 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $146,800. Cost of goods manufactured, $300,500. J. Cash sales to customers, $411,240. k. Cost of goods sold (unadjusted) $296,600. 1. Cash payments to creditors, $65,200. m. Underapplied or overapplied overhead_$? Required: 1. Calculate the ending balances that would be reported on the company's balance sheet on January 31 (Hint: Be sure to calculate the underapplied or overapplied overhead and then account for its affect on the balance sheet.) 2. What is Morrison Company's net operating income for the month of January

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Carl S. Warren, Jefferson P. Jones, William B. Tayler

15th Edition

1337902667, 9781337902663

More Books

Students explore these related Accounting questions