Question

accounting majors please help!

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 $ 40, seg 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 $ 15,109 6,380 22,65e 44,5 3,209 140, 5 227,758 12,100 215,650 $ 2271750 During January the company completed the following transactions a. Purchased raw materials on account, $92,400. b. Raw materials used in production, $99,000 (581,200 was direct materials and $17.800 was indirect materials Paid $196,950 of salaries and wages in cash ($112,200 was direct labor. 539.150 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) Various selling expenses paid in cash, $35,600. Prepaid insurance expired during the month, $2.000 (80% related to production, and 20% related to selling and administration) h Manufacturing overhead applied to production, $139,200. Cost of goods manufactured, $303.000. J. Cash sales to customers, $413760. k. Cost of goods sold (unadjusted). $298.400. 1. Cash payments to creditors, $62.400. m Underapplied or overapplied overhead_$? Required: 1. Calculate the ending balances that would be reported on the company's balance sheet on January 31, (int Be sure to calculate the underapplied or overapplied overhead and then account for its affect on the balance sheet)

Answer 1

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REQUIREMENT #1
	Cash	Raw Maaterial	WIP	Finished Goods	Manufacturing Overhead	Prepaid Expenses	PPE Net	Accounts Payable	Retained Earning
Beginning balance as 1/1	$40,500	$15,100	$6,300	$22,650		$3,200	$1,40,000	$12,100	$2,15,650
Raw Material Purchased		$92,400						$92,400
Raw Maaterial Used in Production		-$99,000	$81,200		$17,800
Salaries and wages	-$1,96,950		$1,12,200		$39,150				-$45,600
utility cost					$40,200			$40,200
Depreciation					$49,000		-$70,000		-$21,000
Selling	-$35,600								-$35,600
Expiration of prepaid insurance					$1,600	-$2,000			-$400
Manufacturing overhead applied			$1,39,200		-$1,39,200
Cost of Goods manufactured			-$3,03,000	$3,03,000
Sale	$4,13,760								$4,13,760
Cost of Goods Sold				-$2,98,400					-$2,98,400
Payments to creditors	-$62,400							-$62,400
Over applied overheads					-$8,550				-$8,550
Ending balance 31/1	$1,59,310	$8,500	$35,900	$27,250	$0	$1,200	$70,000	$82,300	$2,19,860

REQUIREMENT #2 Net operating Income for the month=219860-215650=$4210