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 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 $ 44,250 $11,100 7,050 28,500 46,650 2,075 224,000 S 316,975 $ 13,900 303,075 $ 316,975 During January the company completed the following transactions a. Purchased raw materials on account, $86,200 b. Raw materials used in production, $94,200 ($82,400 was direct materials and $11,800 was indirect materials) c. Paid $195,800 of salaries and wages in cash ($113,600 was direct labor, $44,250 was indirect labor, and $37,950 was related to employees responsible for selling and administration) d. Various manufacturing overhead costs incurred (on account) to support production, $39,450 Depreciation recorded on property, plant, and equipment, $103,600 (70% related to manufacturing equipment and 30% related to assets that support selling and administration) f. Various selling expenses paid in cash, $27950 g. Prepaid insurance expired during the month, $1,250 (80% related to production, and 20% related to selling and administration) h. Manufacturing overhead applied to production, $150,800 i. Cost of goods manufactured, $307,300 j. Cash sales to customers, $421,880 k. Cost of goods sold (unadjusted), $304,200 I. Cash payments to creditors, $72,800 n. Underapplied or overapplied overhead Required 1. Calculate the ending balances that would be reported on the company's balance sheet on January 31. (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 31. (Hint: Be sure to calculate the underapplied or ove 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 January 31 Raw Materials Process Goods Work in Finished Manufacturing Prepaid PP&E Overhead Accounts Retained Transactions Cash Expenses net Payable Earnin Beginning balances 02,075224.000 S 13,900303,075 $11,100$ 7,050 28,500 $ 44,250 Calculate the ending balances that would be reported on the company's balance sheet on January 31. (Hint: Be sure to calculate the underapplied 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 January 31 Raw Materials Process Work in Finished Manufacturing Prepaid PP&E Accounts Retained Payable Earnings S 13,900 303,075 Cash Transactions Goods Overhead Expense net Beginning balances o 2,075 224.000 $ 11,100$ 7,050 28,500 $ 44,250 (a) Raw material purchases b) production (c) Salaries and wages (d) Various overhead costs (e) Depreciation Raw materials used in Various selling expenses Expiration of prepaid insurance Manufacturing overhead applied Cost of goods manufactured G) Sales (k) Cost of goods sold Payments to creditors Ending balances @ 1/31 Required 1 Required 2> Complete this question by entering your answers in the tabs below Required 1 Required 2 What is Morrison Company's net operating income for the month of January? Net operating income K Required 1 Required 2