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Morrison Company uses job$-$order costing to assign manufacturing costs to jobs. Its balance sheet on January $1$ is as follows:

Morrison Company

Balance Sheet

January $1$

Assets

Cash $ $32,000$

Raw materials $ $9,000$

Work in process $4,000$

Finished goods $17,00030,000$

Prepaid expenses $2,000$

Property, plant, and equipment $($net$)190,000$

Total assets $ $254,000$

Liabilities and Stockholders$$ Equity

Accounts payable $ $7,000$

Retained earnings $247,000$

Total liabilities and stockholders$$ equity $ $254,000$

During January the company completed the following transactions:

Purchased raw materials on account, $$74,000.$

Raw materials used in production, $$77,000($$$67,000$ was direct materials and $$10,000$ was indirect materials$).$

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$).$

Various manufacturing overhead costs incurred $($on account$)$ to support production, $$33,000.$

Depreciation recorded on property, plant, and equipment, $$90,000(70\%$ related to manufacturing equipment and $30\%$ related to assets that support selling and administration$).$

Various selling expenses paid in cash, $$27,000.$

Prepaid insurance expired, $$1,200(80\%$ related to production, and $20\%$ related to selling and administration$).$

Manufacturing overhead applied to production, $$132,000.$

Cost of goods manufactured, $$288,000.$

Cash sales to customers, $$395,000.$

Cost of goods sold $($unadjusted$),$ $$285,000.$

Cash payments to creditors, $$62,000.$

Underapplied or overapplied overhead $$$$?$question mark$.$

Required:

Calculate the ending balances on the company's balance sheet on January $31$st$.($Hint: Be sure to calculate the underapplied or overapplied overhead and then account for its effect on the balance sheet.$)$

What is Morrison Company$$s net operating income for January?

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