During January the company completed the following transactions:

a$.$ Purchased raw materials on account, $$74,000.$

b$.$ Raw materials used in production, $$77,000($ $$67,000$ was direct materials and $$10,000$ was indirect materials$).$

c$.$ Paid $$167,000$ of salaries and wages in cash $($ $$95,000$ was direct labor, $$35,000$ was indirect labor, and $$37,000$ was related to

employees responsible for selling and administration$).$

d$.$ Various manufacturing overhead costs incurred $($on account$)$ to support production, $$33,000.$

e$.$ Depreciation recorded on property, plant, and equipment, $$90,000(70\%$ related to manufacturing equipment and $30\%$ related to

assets that support selling and administration$).$

f$.$ Various selling expenses paid in cash, $$27,000.$

g$.$ Prepaid insurance expired, $$1,200(80\%$ related to production, and $20\%$ related to selling and administration$).$

h$.$ Manufacturing overhead applied to production, $$132,000.$

i$.$ Cost of goods manufactured, $$288,000.$

j$.$ Cash sales to customers, $$395,000.$

k$.$ Cost of goods sold $($unadjusted$),$ $$285,000.$

I. Cash payments to creditors, $$62,000.$

n$.$ Underapplied or overapplied overhead

Required:

Calculate the ending balances on the company's balance sheet on January ${31}^{st}.($Hint: Be sure to calculate the underapplied or

overapplied overhead and then account for its effect on the balance sheet.$)$

What is Morrison Company's net operating income for January?