Help Save & Exit Check my 1 Problem 34-4 (Algo) Transaction Analysis (LO3-5) 0 Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: soints eBook Print $ 34,500 References 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 $11,700 7,700 30,750 50, 150 2,975 143,000 $ 230.625 $ 8,700 221,925 $ 210.525 During January the company completed the following trans Check my work During January the company completed the following transactions: a. Purchased raw materials on account, $93,000. b. Raw materials used in production, $98,300 ($84,800 was direct materials and $13,500 was indirect materials). c. Pald $211,800 of salaries and wages in cash ($114,600 was direct labor, $48,900 was indirect labor, and $48,300 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incured (on account) to support production, $36,000 e. Depreciation recorded on property, plant, and equipment, $71,200 (70% related to manufacturing equipment and 30% related to assets that support selling and administration). f. Various selling expenses paid in cash, $38,300 9. Prepaid insurance expired during the month, $1,850 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $143,400. Cost of goods manufactured, $308,500 J. Cash sales to customers, $421,880 k. Cost of goods sold (unadjusted) $304.200. 1. Cash payments to creditors, $69,000 m. Underapplied or overapplied overhead _52 ces Required: 1. Calculate the ending balances that would be reported on the company's balance sheet on January 31st (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? Complete this question by entering your answers in the tabs below. Chapter 342 Help Save & Exit 1 Check Required Required 2 10 point Book Prim 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) (Amounts to be deducted should be indicated by a minus sign.) Morrison Company Transaction Analysis For the Month Ended Jaunary 31 Transactions Cash Raw Work in Finished Manufacturing Prepaid Accounts Materials Retained Process Goods Overhead PPSE (net) - Expenses Payable Earnings Beginning balances 11 $ 4500 5 11700 7.700 S 30.750 $ 0$ 2.975 5143000 $ 8.700 5 221,925 (a) Raw matonal purchases b) Rw materials used in production (c) Sales and wages d) Various overhead costs (0) Depreciation ( Various selling expenses 100 Expiration of prepaid insurance Manufacturing overhead applied 00 Cost of goods manufactured 00) Sales 00 Cost of goods sold 00 Payments to creditors m Ending balances @ 131 Required Required 2 > Required 1 Required 2 What is Morrison Company's net operating income for the month of January? Net operating income