Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows $ 33,150 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 517,700 4,750 31,200 53,650 2,825 128,000 $1217,025 $ 16,000 200,825 5217 625 During January the company completed the following transactions During January the company completed the following transactions: a. Purchased raw materials on account. $89,600 b. Raw materials used in production. $97,800 ($84,600 was direct materials and $13,200 was indirect materials). c. Pald $190,450 of salaries and wages in cash ($95.200 was direct labor. $45,000 was Indirect labor , and $50,250 was related to employees responsible for selling and administration) d. Various manufacturing overhead costs incurred (on account) to support production, $37.050. e Depreciation recorded on property, plant, and equipment. $65,200 (70% related to manufacturing equipment and 30% related to assets that support selling and administration) Various selling expenses paid in cash, $40,250 g. Prepaid insurance expired during the month, $1,750 (80% related to production, and 20% related to selling and administration) h. Manufacturing overhead applied to production, $140.400. Cost of goods manufactured. $297,300 1. Cash sales to customers $406.480 k Cost of goods sold (unadjusted) $293,200. I Cash payments to creditors. $78,400. m. Underapplied or overapplied overhead _$? Calculate the ending balances that would be reported on the company's balance sheet on January 31 (Hine: Be sure to cakulate the underapplied or overapplied overhead and tr 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 January 31 Raw Work in Accounts Cash Finished Manufacturing Prepaid Materials Retained PPSE (net) "Process Goods Overhead Expenses Payable Earnings $ 33,150 $ 17,7005 4,750$ 31,200 $ 0$ 2025 $120,000 $16.800 5200 825 Transactions Beginning balances 11 (a) Raw matinal purchases (D) Raw materials used in production c) Salanes and wages (d) Various overhead costs te Depreciation ( Vandus selling expenses G) Expiration of prepaid insurance Manufacturing overeed oppbed 00 Cost of goods manufactured Sales Cost of goods sold Payments to creditors im Ending balances 1/31 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? Complete this question by entering your answers in the tabs below Required Required 2 What is Morrison Company's net operating income for the month of January? Net operating income
