Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: 37,950 $ 9,999 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 8,350 31,800 50,050 2,600 120,000 $ 210,600 $ 16,200 194,400 $ 210,600 During January the company completed the following transactions: a. Purchased raw materials on account, $80,400. b. Raw materials used in production, $86,600 ($70.600 was direct materials and $16,000 was indirect materials). c. Paid $ 210.950 of salaries and wages in cash ($113,600 was direct labor, $47,550 was indirect labor, and $49,800 was related to employees responsible for selling and administration) d. Various manufacturing overhead costs incurred (on account) to support production, $39.750 CH u vunus RTUTULLUT VIL LUOLI ILULUI ULLUTY SUPport prvuULLUIT, U. e. Depreciation recorded on property, plant, and equipment, $62,000 (70% related to manufacturing equipment and 30% related to assets that support selling and administration) f. Various selling expenses paid in cash, $39,800 g. Prepaid insurance expired during the month, $1,600 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $146,000. 1. Cost of goods manufactured, $303,400. 1. Cash sales to customers, $415,440. k. Cost of goods sold (unadjusted) $299,600. 1. Cash payments to creditors, $73,000. m. Underapplied or overapplied overhead_$? 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 315. (Hint: Be sure to calculate the underappli account for its affect on the balance sheet.) (Amounts to be deducted should be indicated by a minus sign.) Transactions Cash Raw Materials $ 9,900 Transaction Analysis For the Month Ended Jaunary 31 Work in Finished Manufacturing Prepaid Process Goods Overhead PPEE (net) Expenses Payable and $ 3,350 $ 31,800 $ 0 $ 2,600 $ 120,000 = $ 16,200 $ 194,400 $ 37,950 Beginning balances @1/1 (a) Raw material purchases (b) Raw materials used in production (c) Salaries and wages (d) Various overhead costs (e) Depreciation (Various selling expenses (9) Expiration of prepaid insurance (h) Manufacturing overhead applied 0 Cost of goods manufactured 0) Sales (k) Cost of goods sold 0 Payments to creditors (m) Ending balances @ 1/31