Morrison CompanyBalance SheetJanuary 1AssetsCash$ 40,950Raw materialsWork in processFinished goodsPrepaid expensesProperty, plant, and equipment (net)$ 17,8006,60031,80056, 2003,350124,000$ 224,500Total assetsLiabilities and Stockholders' EquityAccounts payableRetained earnings$ 7,100217,400Total liabilities and stockholders' equity$ 224,500During January the company completed the following transactions:a. Purchased raw materials on account, $75,200.b. Raw materials used in production, $91,500 ($80,200 was direct materials and $11,300 was indirect materials).c. Paid $202.100 of salaries and wages in cash ($108,800 was direct labor, $41,700 was indirect labor, and $51,600 was related toemployees responsible for selling and administration).d. Various manufacturing overhead costs incurred (on account) to support production, $43,350.e. Depreciation recorded on property, plant, and equipment, $63,600 (70% related to manufacturing equipment and 30% related toassets that support selling and administration).f. Various selling expenses paid in cash, $41,600.g. Prepaid insurance expired during the month, $2,100 (80% related to production, and 20% related to selling and administration).h. Manufacturing overhead applied to production, $138,600.i. Cost of goods manufactured, $309,200.j. Cash sales to customers, $422,160.k. Cost of goods sold (unadjusted), $304,400.I. Cash payments to creditors, $64,200.m. Underapplied or overapplied overhead_$?Required:1. Calculate the ending balances that would be reported on the company's balance sheet on January 31St. (Hint: Be sure to calculatethe 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? k. Cost of goods sold (unadjusted), $304,400.I. Cash payments to creditors, $64,200.m. Underapplied or overapplied overhead _$?_Required:1. Calculate the ending balances that would be reported on the company's balance sheet on January 31st (Hint: Be sure to calculatethe 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 1Required 2What is Morrison Company's net operating income for the month of January?Net operating income< Required 1Required 2 >

Net Income 1110 Ending Balance, 31 Dec 155210 1500 25000 36600 0 1250 60400 = 61450 218510

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?

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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