Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The companys manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Payroll Payable) has not been recorded.

		Debit			Credit
Cash	$	56,000
Accounts receivable		35,000
Raw materials inventory		22,500
Work in process inventory		0
Finished goods inventory		9,000
Prepaid rent		3,000
Accounts payable				$	10,000
Notes payable					13,000
Common stock					30,000
Retained earnings					77,000
Sales					177,500
Cost of goods sold		110,000
Factory overhead		28,000
Operating expenses		44,000
Totals	$	307,500		$	307,500

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

Materials requisition 21-3010:		$	4,200	direct materials to Job 402
Materials requisition 21-3011:		$	7,500	direct materials to Job 404
Materials requisition 21-3012:		$	1,700	indirect materials
Labor time ticket 6052:		$	3,000	direct labor to Job 402
Labor time ticket 6053:		$	10,000	direct labor to Job 404
Labor time ticket 6054:		$	2,000	indirect labor

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 100% of direct labor cost

Prepare an income statement for 2017 and a balance sheet as of December 31, 2017.