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 Debit $ 78,000 47,000 Credit 28,500 0 15,000 5,000 $ 10,100 13,100 50,000 77,000 190,300 Factory overhead General and administrative expenses 103,000 25,000 39,000 $ 340,500 $ 340,500 Totals 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: $ 4,300 direct materials to Job 402 $ 7,500 direct materials to Job 404 $ 1,700 indirect materials $ 7,000 direct labor to Job 402 $13,000 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. Journal entry worksheet < 1 2 3 4 5 Record direct materials used for Jobs 402 and 404. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 3 4 5 Record direct labor costs for Jobs 402 and 404. Note: Enter debits before credits. Transaction b. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 4 5 Record the entry to apply overhead to Jobs 402 and 404. Note: Enter debits before credits. Transaction C. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Record the indirect materials used. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Record the indirect labor. Note: Enter debits before credits. Transaction General Journal Debit Credit View general Journal Record entry Clear entry Factory Overhead Actual overhead (given) Reg 2A Req 2B > Journal CILLIY WUIRE < 1 Record the entry to allocate any overapplied or underapplied overhead. Note: Entr debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Cash List of Account Balances December 31 Debit Credit 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 (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals BERGO BAY COMPANY Income Statement For Year Ended December 31 Req 4 Income Statement Inventories Assets Total assets Liabilities Total liabilities Total equity Equity S Total liabilities and equity Assume that the $1,700 on materials requisition 12 should have been direct materials charged to Job 404. Does this err result in overstatement or understatement of total assets on the balance sheet at December 31? Does this error result in overstatement or understatement of total assets