Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows somet

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Bergo Bay S Accounting System Generated The Following Account Balances On December 31 The Company S Manager Knows Somet 1 (75.57 KiB) Viewed 37 times

Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 74,000 43,000 26,500 0 9,000 3,000 117,000 27,000 37,000 $336,500 Credit $ 8,900 11,900 30,000 81,000 204,700 $ 336,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,200 direct materials to Job 402 $ 7,100 direct materials to Job 404 $ 2,200 indirect materials $ 4,000 direct labor to Job 402 $ 16,000 direct labor to Job 404 $5,000 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost.

a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. Required: 1. Use the document information above to prepare journal entries for the above costs. View transaction list Journal entry worksheet 1 2 Transaction a. 3 Note: Enter debits before credits. Record direct materials used for Jobs 402 and 404. 4 5 General Journal Debit Credit >

2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 2A Req 2B In Factory Overhead T-account, enter amounts from part 1 related to factory overhead Determine the amount of over- or underapplied overhead. Actual overhead (given) Factory Overhead

3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $81,000 in this list. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable BERGO BAY COMPANY List of Account Balances December 31 Factory wages payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit Credit

4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $127,500 at the end of the current year. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement. BERGO BAY COMPANY Income Statement For Year Ended December 31 < Income Statement Balance Sheet >

4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $127,500 at the end of the current year. Complete this question by entering your answers in the tabs below. Income Statement Prepare a balance sheet as of December 31. Total assets Total liabilities Balance Sheet Total equity Total liabilities and equity BERGO BAY COMPANY Balance Sheet As at December 31 Assets Inventories Liabilities Equity < Income Statement Balance Sheet >