Problem 3A-4 Transaction Analysis [LO3-5 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 ok Assets Cash s 41,400 rint Raw materia1s Work in process Pinished goods Prepaid expenses Property,plant, and equipment (net) Total assets $15,200 5,300 24,750 45,250 2,450 131,000 5 220 100 Liabilities and Stockholders Equity Accounts payable Retained earning Total liabilities and stockholders equity 11,700 208 400 220,100 During January the company completed the following transactions: a. Purchased raw materials on account, $77800 b. Raw materials used in production, $91,000 ($78,800 was direct materials and $12,200 was indirect materials) c. Paid $184,400 of salaries and wages in cash ($111.200 was direct labor, $35,400 was indirect labor, and $37,800 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $46,650 e. Depreciation recorded on property, plant, and equipment, se 6,400 70% related to manufacturing equpment and 3reated to assets that support selling and administration) CPrev21 of 21 d. Various manufacturing overhead costs incurred (on account) to support production, $46,650 e. Depreciation recorded on property, plant, and equipment, $66,400 (70% related to manufacturing equipment and 30% related to assets that support selling and administration) f Various selling expenses paid in cash, $27,800. g. Prepaid insurance expired during the month, $1,500 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $132,200. i. Cost of goods manufactured, $288,600. j. Cash sales to customers, $395,000. k. Cost of goods sold (unadjusted), $285,000 I Cash payments to creditors, $79,600. 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 31st. (Hint: Be sure to calculate the underapplied or 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 3
