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Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: During January the

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Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: During January the company completed the following transactions: a. Purchased raw materials on account, $81,400 b. Raw materiais used in production, $88,900 (\$75,600 was direct materials and $13,300 was indirect materials). 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. Paid $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 selling and administration) d. Various manufacturing overhead costs incurred (on account) to support production, $46,050. e. Depreciation recorded on property, plant, and equipment, $70,4000,70% related to manufacturing equipment and 30% related to assets that support selling and administration). f. Various selling expenses paid in cash, $31,100. g. 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. 1. Cost of goods manufactured, $296,600. 1. Cash sales to customers, $406,480. k. Cost of goods sold (unadjusted), $293.200. L. Cash payments to creditors, \$71,400 m. Underapplied or overapplied ovethead $ ? 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

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