Please complete questions 3 & 4

Bergamo Bay's computer system generated the following trial balance on December 31, 2015. 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	$	170,000
Accounts receivable		75,000
Raw materials inventory		80,000
Work in process inventory		0
Finished goods inventory		15,000
Prepaid rent		3,000
Accounts payable				$	17,000
Notes payable					25,000
Common stock					50,000
Retained earnings					271,000
Sales					373,000
Cost of goods sold		218,000
Factory overhead		115,000
Operating expenses		60,000
Totals	$	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.

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.

Prepare a balance sheet as of December 31, 2015.

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.

Question #1
Date	General Journal	Debit	Credit
a.	Work in process inventory (10,200 + 18,600)	$28,800.00
	Raw materials inventory		$28,800.00
	(To record direct materials used in production)
b.	Work in process inventory (36,000 + 23,800)	$59,800.00
	Salaries and wages payable /Factory payroll		$59,800.00
	(To record direct labor used in production)
c.	Work in process inventory (59,800 x 200%)	$119,600.00
	Factory Overhead		$119,600.00
	(To record factory overheads applied to production)
d.	Factory Overhead	$5,600.00
	Raw materials inventory		$5,600.00
	(To record indirect material used for production)
e.	Factory Overhead	$8,200.00
	Salaries and wages payable / Factory payroll		$8,200.00
	(To record indirect labor used in production

2. Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under or overpaid overhead for the year. Prepare the adjusting entry to allocate any over- or underpaid overhead to cost of goods sold, assuming the amount is not material.

Revised balance of the factory overhead account
Ending balance from trial balance	$115,000.00
Applied jobs to 404 and 402	($119,600.00)
Additional indirect material	$5,600.00
Additional indirect labor	$8,200.00
Underapplied Overhead	$9,200.00

Date	General journal	Debit	Credit
31-Dec	Cost of Goods Sold	$9,200
	Factory Overhead		$9,200

3. Prepare a revised trial balance.

4. Prepare an income statement for 2015 and balance sheet as of December 2015.