Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help. Bergo Bay's accounting system generated the following account balances on December 3 1 . The company's manager knows something is wrong with this

Please help. 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. 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 (prior year)271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
General and administrative expenses 60,000
Totals $ 736,000 $ 736,000
These six documents must be processed to bring the accounting records up to date.
Materials requisition 10: $ 10,200 direct materials to Job 402
Materials requisition 11: $ 18,600 direct materials to Job 404
Materials requisition 12: $ 5,600 indirect materials
Labor time ticket 52: $ 36,000 direct labor to Job 402
Labor time ticket 53: $ 23,800 direct labor to Job 404
Labor time ticket 54: $ 8,200 indirect labor
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost.Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is \(150\%\) of direct labor cost.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

6th Canadian Edition

1119731828, 9781119731825

More Books

Students also viewed these Accounting questions

Question

What is a via? What is its function?

Answered: 1 week ago

Question

I felt sorry for the clerk.

Answered: 1 week ago

Question

How would you rate Indra Nooyi using the Blake-Mouton grid?

Answered: 1 week ago