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 $ 48,650 Raw materials $11,600 Work in process 6,350 Finished goods 19,500 37,450 Prepaid expenses 2,300 Property, plant, and equipment (net) 141,000 Total assets $ 221,400 Liabilities and Stockholders' Equity Accounts payable $ 8,400 Retained earnings 213,000 Total abilities and stockholders' equity $ 221, 408 During January the company completed the following transactions: a. Purchased raw materials on account, $81,400 b. Raw materials used in production $88,900 ($75,600 was direct materials and $13,300 was indirect materials). c Poid $189,800 of salaries and wages in cash ($99,200 was direct labor, $49,500 was indirect labor, and $41,100 was related to employees responsible for seling and administration), d. Various manufacturing overhead costs incurred (on account) to support production, $46,050. e. Depreciation recorded on property, plant, and equipment, $70,400 (70% related to manufacturing equipment and 30% related to assets that support selling and administration), Various selling expenses paid in cash, $31,100. 9. Prepaid insurance expired during the month $1,400 (80% related to production, and 20% related to selling and administration) h. Manufacturing overhead applied to production, $141,400 Cost of goods manufactured, $296,600 J. Cash sales to customers, $406,480. k Cost of goods sold (unadjusted), $293,200. 1. Cash payments to creditors, $71,400. m. Underapplied or overapplied overhead $? Check my w 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 underapplied or overapplied over 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 Retained Materials Process Goods Overhead PP&E (net) - Expenses Payable Earnings Beginning balances 1/1 $ 40,650 $ 11,600 s 6,350 $ 19,500 $ 05 2,300 $ 140,000 $ 8.400 $ 213.000 (a) Raw material purchases (b) Raw materials used in production (c) Salaries and wages (a) Various overhead costs (e) Depreciation Various selling expenses (9) Expiration of prepaid insurance (h) Manufacturing overhead applied 0 Cost of goods manufactured les Cost of goods sold Payments to creditors raced overhead
