10 points 1 Problem 3A-4 (Algo) 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 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 January 1 $ 41,400 $ 15,200 5,300 Total liabilities and stockholders' equity 24,758 During January the company completed the following transactions: 45,250 2,450 131,000 $ 220,100 $ 11,700 288,400 $ 220,100 a. Purchased raw materials on account, $77,800. 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, $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. 1. 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.) 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 Answer is not complete. Check my work mode: This shows what is correct or Incorrect 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.) (Amounts to be deducted should be indicated by a minus sign.) Morrison Company Transaction Analysis For the Month Ended Jaunary 31 Finished Goods Transactions Cash Beginning balances at 1/1 $ 41,400 Raw Materials $ 15,200 Work in Process Manufacturing Overhead Prepaid Expenses PPE (net) Accounts Payable Retained Earnings $ 5,300 $ 24,760 2,450 = $ 11,700 131,000 $208,400 (a) Raw material purchases 77.800 = Raw materials used in (b) (91,000) 78,800 production (c) Salaries and wages (184,400) 11,200 (d) Various overhead costs Depreciation 12,200 35,400 46,650 46,480 = (f) Various selling expenses (Q) Expiration of prepaid insurance Manufacturing overhead (h) applied Cost of goods manufactured = (37,800) = (66,400) = (10,020) = (27,800) 132,200 (288,000) 1.200 (132,200) (1.500) - 288,000 (300) - = (S) Sales 395,000 (k) Cost of goods sold = = 305,000 (286,000) Payments to creditors (70,600) - (m) Underapplied overhead 8.530 (8.530) Ending balances at 1/31 $144,800 $ 2.000 $ 38,900 $ 28.350 1.200 S 950 $64.000 $ 56,550 $224,060 < Required 1 Required 2 > 1 Problem 3A-4 (Algo) Transaction Analysis [LO3-5] 10 points 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 $ 41,400 $ 15,200 5,300 Finished goods Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 24,750 During January the company completed the following transactions: a. Purchased raw materials on account, $77,800. 45,250 2,450 131,000 $ 220,100 $ 11,700 208,400 $ 220,100 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, $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? Answer is not complete. 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 S 15,650 < Required 1 Required 2 >