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				$	37,350
Raw materials	$	17,200
Work in process		7,300
Finished goods		31,500			56,000
Prepaid expenses					2,900
Property, plant, and equipment (net)					107,000
Total assets				$	203,250
Liabilities and Stockholders Equity
Accounts payable				$	14,700
Retained earnings					188,550
Total liabilities and stockholders equity				$	203,250

During January the company completed the following transactions:

Purchased raw materials on account, $82,200.

Raw materials used in production, $94,700 ($75,000 was direct materials and $19,700 was indirect materials).

Paid $194,700 of salaries and wages in cash ($103,800 was direct labor, $43,800 was indirect labor, and $47,100 was related to employees responsible for selling and administration).

Various manufacturing overhead costs incurred (on account) to support production, $43,350.

Depreciation recorded on property, plant, and equipment, $56,800 (70% related to manufacturing equipment and 30% related to assets that support selling and administration).

Various selling expenses paid in cash, $37,100.

Prepaid insurance expired during the month, $1,800 (80% related to production, and 20% related to selling and administration).

Manufacturing overhead applied to production, $138,600.

Cost of goods manufactured, $299,400.

Cash sales to customers, $409,280.

Cost of goods sold (unadjusted), $295,200.

Cash payments to creditors, $64,800.

Underapplied or overapplied overhead $? .

Morrison Company Transaction Analysis For the Month Ended Jaunary 31 Work in Materials Process Retained hed Manufacturing Prepaid pP&E (net) Payable Earnings Raw Accounts PayableEarnings $. Transactions Cash Goods Overhead Expenses Beginning balances @1/1 (a) Raw material purchase (b) Raw materials used in production (c) Salaries and wages (d) Various overhead costs (e) Depreciation (f) Various selling expenses (g) Expiration of prepaid insurance (h) Manufacturing overhead applied () Cost of goods manufactured G) Sales (k) Cost of goods sold () Payments to creditors $ 37,350$ 17,200 $ 7,300 $ 31,500$ ol $ 2.900| $. 107,000|=| 14,700|$ 188,550 Ending balances1/31 $ 50,200