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.

These six documents must be processed to bring the accounting records up to date.

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

Prepare an income statement for the year and a balance sheet as of December $31.$ H$$t: Retained eamings is $$123,600$ at the

end of the current year.

Assume that the $$2,500$ on materials requisition $12$ should have been direct materials charged to Job $404.$ Does this efror result

in overstatement or understatement of total assets?

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Prepare a balance sheet as of December $31.$