Morrison Company uses job-order costing to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows:Morrison CompanyBalance SheetJanuary 1AssetsCashRaw materialsWork in processFinished goodsPrepaid expensesProperty, plant, and equipment (net)Total assetsLiabilities and Stockholders' EquityAccounts payableRetained earningsTotal liabilities and stockholders' equity$ 11,9005,90020,550i. Cost of goods manufactured, $293,800.j. Cash sales to customers, $401,720.$ 34,800k. Cost of goods sold (unadjusted), $289,800.1. Cash payments to creditors, $77,200.m. Underapplied or overapplied overhead_$?.38,3502,750137,000$ 212,900During 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 toemployees 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 toassets that support selling and administration).f. Various selling expenses paid in cash, $39,800.$ 10,400202,500$ 212,900g. Prepaid insurance expired, $1,700 (80% related to production, and 20% related to selling and administration).h. Manufacturing overhead applied to production, $141,000. Calculate the ending balances on the company's balance sheet on January 31st. (Hint: Be sure to calculate the underapplied or overapplied overhead and then account forbalance sheet.)Note: Amounts to be deducted should be indicated by a minus sign.Transactions(a)(b)(c)(d)(e)(f)(9)(h)(1)(1)(k)(1)(m)Beginning balances at 1/1Raw material purchasesRaw materials used in productionSalaries and wagesVarious overhead costsDepreciationVarious selling expensesExpiration of prepaid insuranceManufacturing overhead appliedCost of goods manufacturedSalesCost of goods soldPayments to creditorsUnderapplied overheadEnding balances at 1/31Cash$ 34,800(195,100)(39,800)✔401,720✔✔(77,200) ✔RawMaterials$ 11,900Morrison CompanyTransaction AnalysisFor the Month Ended Jaunary 31Work inProcess$ 5,90090,800✔(93,600) ✔78,600✔110,200✔Finished ManufacturingGoodsOverhead$ 20,550141,000✔(293,800) ✔ 293,800✔(289,800)✔$✓$ 124,420 $ 9,100 $ 41,900 $ 24,550 $0+› › ››15,000✔35,10041,55048,1601,360✔(141,000)✔(170) ✔0PrepaidExpenses$ 2,750$(1,700) ✔$PPE(net)137,000=1,050 $68,200✔E===(68,800) ========EAccountsPayable$ 10,40090,800✔41,550RetainedEarnings$ 202,500(49,800) X(20,640)(39,800)(340)30000401,720✔(289,800)(77,200) X(170)$ 65,550 $ 203,670✔

Name: Morrison Company uses job-order costing to assign manufacturing costs
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Morrison Company uses job-order costing to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows:Morrison CompanyBalance SheetJanuary 1AssetsCashRaw materialsWork in processFinished goodsPrepaid expensesProperty, plant, an