Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: Morrison Company Balance Sheet January 1 Assets Cash $ 43,050 Raw materials $ 9,500 Work in process 5,550 Finished goods 22,350 37,400 Prepaid expenses 2,525 Property, plant, and equipment (net) 117,000 Total assets $ 199,975 Liabilities and Stockholders' Equity Accounts payable $ 8,700 Retained earnings 191,275 Total liabilities and stockholders' equity $ 199,975 During January the company completed the following transactions: a. Purchased raw materials on account, $78,000 b. Raw materials used in production, $84,000 ($70,400 was direct materials and $13,600 was indirect materials). c. Paid $192,750 of salaries and wages in cash ($106,800 was direct labor, $37,650 was indirect labor, and $48,300 was related to employees responsible for selling and administration) d. Various manufacturing overhead costs incurred (on account) to support production, $45.600. e. Depreciation recorded on property, plant, and equipment, $60,800 (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 $1,550 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $140,200. 1. Cost of goods manufactured, $289,100. J. Cash sales to customers, $395,560. Check my work J. Cash sales to customers, $395,560. k. Cost of goods sold (unadjusted) $285,400. 1. Cash payments to creditors, $74,800. m. Underapplied or overapplied overhead_$? 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. Required 1 Required 2 Calculate the ending balances that would be reported on the company's balance sheet on January 31st (Hint: Be sure to calculate the underapi 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 Raw Transactions Work in Cash Finished Manufacturing Prepaid Accounts Materials Process Goods PP&E (net) - Overhead Expenses Payable E Beginning balances @1/1 $ 43,050 S 9.500 $ 5,550 $ 22,350 $ 0$ 2,525 $ 117,000 - $ 8,700 S (a) Raw material purchases (b) Raw materials used in production (c) Salaries and wages (d) Various overhead costs Prev 1 of 1 !!! Next Required 1 Required 2 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 overapplie account for its affect on the balance sheet.) (Amounts to be deducted should be indicated by a minus sign.) 10 Morrison Company Transaction Analysis For the Month Ended Jaunary 31 Raw Work in Cash Finished Manufacturing Prepaid Materials Process Goods Overhead Expenses PP&E (net) - $ 43,050 $ 9.500 $ 5,550 $ 22,350 $ 0 $ 2,525 $ 117,000 Transactions Accounts Retained Payable Earnings $ 8,700 $ 191,275 Beginning balances 01/1 (a) Raw material purchases (b) Raw materials used in production (c) Salaries and wages (d) Various overhead costs (0) Depreciation Various seling expenses (0) Expiration of prepaid insurance m) Manufacturing overhead applied 0 Cost of goods manufactured 0) Sales (K) Cost of goods sold Payments to creditors Ending balances @ 1/31
