Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's 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. Credit Debit $ 68,000 47,000 28,500 0 12,000 4,000 Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings Sales Cost of goods sold Factory overhead Operating expenses Totals $ 9,400 12,400 40,000 89,000 170, 700 101,000 24,000 37,000 $321,500 $321,500 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: Materials requisition 21-3011: Materials requisition 21-3012: Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: $ 4,100 direct materials to Job 402 $ 7,200 direct materials to Job 404 $ 1,700 indirect materials $ 4,000 direct labor to Job 402 $10,000 direct labor to Job 404 $ 1,000 indirect labor Problem 15-2A Part 1 a. Direct materials costs to Work in Process Inventory. b. Direct labor costs to Work in Process Inventory. c. Overhead costs to Work in Process Inventory. d. Indirect materials costs to the Factory Overhead account. e. Indirect labor costs to the Factory Overhead account. Required: 1. Prepare journal entries to assign the above costs. 2.1 Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year. Revised Factory Overhead account Ending balance from trial balance 0 3. Prepare a revised trial balance. BERGAMO BAY COMPANY Trial Balance December 31, 2017 Debit Credit Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock Retained earnings Sales 4. Prepare an income statement for 2017 and a balance sheet as of December 31, 2017. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement for 2017. BERGAMO BAY COMPANY Income Statement For Year Ended December 31, 2017 Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's 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. Credit Debit $ 68,000 47,000 28,500 0 12,000 4,000 Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings Sales Cost of goods sold Factory overhead Operating expenses Totals $ 9,400 12,400 40,000 89,000 170, 700 101,000 24,000 37,000 $321,500 $321,500 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: Materials requisition 21-3011: Materials requisition 21-3012: Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: $ 4,100 direct materials to Job 402 $ 7,200 direct materials to Job 404 $ 1,700 indirect materials $ 4,000 direct labor to Job 402 $10,000 direct labor to Job 404 $ 1,000 indirect labor Problem 15-2A Part 1 a. Direct materials costs to Work in Process Inventory. b. Direct labor costs to Work in Process Inventory. c. Overhead costs to Work in Process Inventory. d. Indirect materials costs to the Factory Overhead account. e. Indirect labor costs to the Factory Overhead account. Required: 1. Prepare journal entries to assign the above costs. 2.1 Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year. Revised Factory Overhead account Ending balance from trial balance 0 3. Prepare a revised trial balance. BERGAMO BAY COMPANY Trial Balance December 31, 2017 Debit Credit Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock Retained earnings Sales 4. Prepare an income statement for 2017 and a balance sheet as of December 31, 2017. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement for 2017. BERGAMO BAY COMPANY Income Statement For Year Ended December 31, 2017