Morrison Company uses job-order costing to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: Morrison Company Balance Sheet January 1 Assets Cash $ 34,800 Raw materials $ 11,900 Work in process 5,900 Finished goods 20,550 38,350 Prepaid expenses 2,750 Property, plant, and equipment (net) 137,000 Total assets $ 212,900 Liabilities and Stockholders Equity Accounts payable $ 10,400 Retained earnings 202,500 Total liabilities and stockholders equity $ 212,900 During January the company completed the following transactions: Purchased raw materials on account, $90,800. Raw materials used in production, $93,600 ($78,600 was direct materials and $15,000 was indirect materials). Paid $195,100 of salaries and wages in cash ($110,200 was direct labor, $35,100 was indirect labor, and $49,800 was related to employees responsible for selling and administration). Various manufacturing overhead costs incurred (on account) to support production, $41,550. Depreciation recorded on property, plant, and equipment, $68,800 (70% related to manufacturing equipment and 30% related to assets that support selling and administration). Various selling expenses paid in cash, $39,800. Prepaid insurance expired, $1,700 (80% related to production, and 20% related to selling and administration). Manufacturing overhead applied to production, $141,000. Cost of goods manufactured, $293,800. Cash sales to customers, $401,720. Cost of goods sold (unadjusted), $289,800. Cash payments to creditors, $77,200. Underapplied or overapplied overhead $?question mark. Required: Calculate the ending balances 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.) What is Morrison Companys net operating income for January?

During January the company completed the following transactions: a. Purchased raw materials on account, $90,800. b. Raw materials used in production, $93,600 ( $78,600 was direct materials and $15,000 was indirect materials). c. Paid $195,100 of salaries and wages in cash ($110,200 was direct labor, $35,100 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, $41,550. e. Depreciation recorded on property, plant, and equipment, $68,800 (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, $1,700 (80\% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $141,000. i. Cost of goods manufactured, $293,800. j. Cash sales to customers, $401,720. k. Cost of goods sold (unadjusted), $289,800. I. Cash payments to creditors, $77,200. m. Underapplied or overapplied overhead _$ ? Required: 1. Calculate the ending balances 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 January? Problem 3A-4 (Algo) Transaction Analysis [LO3-5] Morrison Company uses job-order costing to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: During January the company completed the following transactions: What is Morrison Company's net operating income for January? Calculate the ending balances on the company's balance sheet on January 31st. (Hint: Be sure to calculate the underapplied or overapplied overhead and then ac balance sheet.) Note: Amounts to be deducted should be indicated by a minus sign