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 Wages Payable) has not been recorded Debit Credit 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 overhea Operating expenses Totals $170,000 75,000 80,000 0 15,000 3,000 $ 17,000 25,000 50,000 271,000 373,000 218,000 115,000 60,000 $736,000 $736,000 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: $10,200 direct materials to Job 402 Materials requisition 21.3011: S18.600 direct materials to lob 404 Materials requisition 21-3012: Labor time ticket 6052: Labor time ticket 6053 Labor time ticket 6054: $5,600 indirect materials $36,000 direct labor to Job 402 $23,800 direct labor to Job 404 $8,200 indirect labor Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost. Required 1. Use information on the six source documents to prepare journal entries to assign the following costs. 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. 2. Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. Prepare the adjusting entry to allocate any over-or underapplied overhead to Cost of Goods Sold, assuming the amount is not material. Check (2) $9,200 underapplied overhead 3. Prepare a revised trial balance. (3) T. B. totals, $804,000 4. Prepare an income statement for 2017 and a balance sheet as of December 31, 2017. (4) Net income, $85,800 Analysis Component 5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017. Page 703