Question

Help Save & Exit Check my 1 Problem 34-4 (Algo) Transaction Analysis (LO3-5) 0 Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: soints eBook Print $ 34,500 References 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 $11,700 7,700 30,750 50, 150 2,975 143,000 $ 230.625 $ 8,700 221,925 $ 210.525 During January the company completed the following trans

Answer 1

1. Calculation of ending balance:

Transactions Accounts Retained Payable Earning $ 8,700 $ 221,925 $ 93,000 Morrison Company Transaction Analysis For the Month Ended January 31 Raw Work-in Finished Manufacturing Prepaid Cash PP&E (Net) Material Process Goods Overhead Expenses $ 34,500 $ 11,700 $ 7,700 $ 30,750 $ $ 2,975 $ 143,000 $ 93,000 $ 98,300 $ 84,800 $ 13,500 $ 211,800 $ 114,600 $ 48,900 $ 36,000 $ 49,840 $ 71,200 $ 38,300 $ 1,480 $ 1,850 $ 143,400 $ 143,400 $ 308,500 $ 308,500 $ 421,880 $ 304,200 $ 69,000 $ 48,300 $ 35,000 $ 21,360 $ 38,300 $ 370 Beginning Balance @1/1 Raw Material Purchased Raw Material used in Production Salaries and Wages Various Overhead Costs Depreciation Various Selling Expenses Expiration of prepaid insurance Manufacturing overhead applied Cost of goods manufactured Sales Cost of goods sold Payments to creditors Overapplied/Underapplied Overheads Ending balances @ 1/31 : $ 421,880 $ 304,200 $ 69,000 $ $ 137,280 $ 6,400 $ 42,000 $ 35,050 $ 6,320 $ 1,125 $ 71,800 $ 6,320 $ 68,700 $ 224,955

2. Morrison Company’s Net Operating Income for the month of January:

Particulars Amount $ 421,880 -$ 304,200 -$ 6,320 $ 111,360 Sales Less: COGS Less: Underapplied overhead Gross profit Less: Expenses Salaries & wages expense Depreciation expense Selling expense Insurance expense -$ -$ -$ -$ 48,300 21,360 38,300 370-$ 108,330 Net Income $ 3,030