Homework Help is Here – Start Your Trial Now!
Business
Accounting
Assets Cash Raw materials Work in process Finished goods January 1 $ 32,000 $ 9,000 Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 4,000 17,000 During January the company completed the following transactions: a. Purchased raw materials on account, $74,000. 30,000 2,000 190,000 $ 254,000 $ 7,000 247,000 $ 254,000 b. Raw materials used in production, $77,000 ($67,000 was direct materials and $10,000 was indirect materials). c. Paid $167,000 of salaries and wages in cash ($95,000 was direct labor, $35,000 was indirect labor, and $37,000 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $33,000. e. Depreciation recorded on property, plant, and equipment, $90,000 (70% related to manufacturing equipment and 30% related to assets that support selling and administration). f. Various selling expenses paid in cash, $27,000. g. Prepaid insurance expired, $1,200 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $132,000. i. Cost of goods manufactured, $288,000. j. Cash sales to customers, $395,000. k. Cost of goods sold (unadjusted), $285,000. I. Cash payments to creditors, $62,000. n. Underapplied or overapplied overhead $? Required: 1. 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 for its effect on the balance sheet.) 2. What is Morrison Company's net operating income for January?

Assets Cash Raw materials Work in process Finished goods January 1 $ 32,000 $ 9,000 Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 4,000 17,000 During January the company completed the following transactions: a. Purchased raw materials on account, $74,000. 30,000 2,000 190,000 $ 254,000 $ 7,000 247,000 $ 254,000 b. Raw materials used in production, $77,000 ($67,000 was direct materials and $10,000 was indirect materials). c. Paid $167,000 of salaries and wages in cash ($95,000 was direct labor, $35,000 was indirect labor, and $37,000 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $33,000. e. Depreciation recorded on property, plant, and equipment, $90,000 (70% related to manufacturing equipment and 30% related to assets that support selling and administration). f. Various selling expenses paid in cash, $27,000. g. Prepaid insurance expired, $1,200 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $132,000. i. Cost of goods manufactured, $288,000. j. Cash sales to customers, $395,000. k. Cost of goods sold (unadjusted), $285,000. I. Cash payments to creditors, $62,000. n. Underapplied or overapplied overhead $? Required: 1. 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 for its effect on the balance sheet.) 2. What is Morrison Company's net operating income for January?

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 5E: Recording materials transactions Prepare a journal entry to record each of the following materials...
See similar textbooks
icon
Related questions
Question
None
Assets Cash Raw materials Work in process Finished goods January 1 $ 32,000 $ 9,000 Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 4,000 17,000 During January the company completed the following transactions: a. Purchased raw materials on account, $74,000. 30,000 2,000 190,000 $ 254,000 $ 7,000 247,000 $ 254,000 b. Raw materials used in production, $77,000 ($67,000 was direct materials and $10,000 was indirect materials). c. Paid $167,000 of salaries and wages in cash ($95,000 was direct labor, $35,000 was indirect labor, and $37,000 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $33,000. e. Depreciation recorded on property, plant, and equipment, $90,000 (70% related to manufacturing equipment and 30% related to assets that support selling and administration). f. Various selling expenses paid in cash, $27,000. g. Prepaid insurance expired, $1,200 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $132,000. i. Cost of goods manufactured, $288,000. j. Cash sales to customers, $395,000. k. Cost of goods sold (unadjusted), $285,000. I. Cash payments to creditors, $62,000. n. Underapplied or overapplied overhead $? Required: 1. 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 for its effect on the balance sheet.) 2. What is Morrison Company's net operating income for January?
Transcribed Image Text:Assets Cash Raw materials Work in process Finished goods January 1 $ 32,000 $ 9,000 Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 4,000 17,000 During January the company completed the following transactions: a. Purchased raw materials on account, $74,000. 30,000 2,000 190,000 $ 254,000 $ 7,000 247,000 $ 254,000 b. Raw materials used in production, $77,000 ($67,000 was direct materials and $10,000 was indirect materials). c. Paid $167,000 of salaries and wages in cash ($95,000 was direct labor, $35,000 was indirect labor, and $37,000 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $33,000. e. Depreciation recorded on property, plant, and equipment, $90,000 (70% related to manufacturing equipment and 30% related to assets that support selling and administration). f. Various selling expenses paid in cash, $27,000. g. Prepaid insurance expired, $1,200 (80% related to production, and 20% related to selling and administration). h. Manufacturing overhead applied to production, $132,000. i. Cost of goods manufactured, $288,000. j. Cash sales to customers, $395,000. k. Cost of goods sold (unadjusted), $285,000. I. Cash payments to creditors, $62,000. n. Underapplied or overapplied overhead $? Required: 1. 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 for its effect on the balance sheet.) 2. What is Morrison Company's net operating income for January?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS