HW for Mon $2/3$: Pr $3$A$-4,3-13$

$1$

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

$3\mathrm{.}5$

points

Print

$\backslash$table$[[,\backslash$table$[[$Morrison Company$],[$Balance Sheet$],[$January$]],,],[$Assets$,,,],[$Cash$,,,]]$

During January the company completed the following transactions:

a$.$ Purchased raw materials on account, $$92,400.$

b$.$ Raw materials used in production, $$99,000($ $$81,200$ was direct materials and $$17,800$ was indirect materials$).$

c$.$ Paid $$196,950$ of salaries and wages in cash $($ $$112,200$ was direct labor, $$39,150$ was indirect labor, and $$45,600$ was related to employees responsible for selling and administration$).$

d$.$ Various manufacturing overhead costs incurred $($on account$)$ to support production, $$40,200.$

e$.$ Depreciation recorded on property, plant, and equipment, $$70,000(70\%$ related to manufacturing equipment and $30\%$ related to assets that support selling and administration$).$

f$.$ Various selling expenses paid in cash, $$35,600$ d

g$.$ Prepaid insurance expired, $$2,000(80\%$ related to production, and $20\%$ related to selling and administration$).$

h$.$ Manufacturing overhead applied to production, $$139,200.$

i$.$ Cost of goods manufactured, $$303,000.$

j$.$ Cash sales to customers, $$413,760.$

k$.$ Cost of goods sold $($unadjusted$),$ $$298,400.$

I. Cash payments to creditors, $$62,400.$

m $.$ Underapplied or overapplied overhead

$$?$

Required:

Calculate the ending balances on the company's balance sheet on January ${31}^{st}.($Hint: Be sure to calculate the underapplied or overapplied overhead and then account for its effect on the balance sheet.$)$

What is Morrison Company's net operating income for January?

Complete this question by entering your answers in the tabs below.