Problem $19-3$A $($Algo$)$ Computing and recording job costs; preparing income statement and balance sheet LO P$1,$ P$2,$ P$3,$ P$4$

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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.

Debit Credit

Cash $ $74,000$

Accounts receivable $43,000$

Raw materials inventory $26,500$

Work in process inventory $0$

Finished goods inventory $6,000$

Prepaid rent $2,000$

Accounts payable $ $12,000$

Notes payable $15,000$

Common stock $20,000$

Retained earnings $($prior year$)76,000$

Sales $215,500$

Cost of goods sold $111,000$

Factory overhead $26,000$

General and administrative expenses $50,000$

Totals $ $338,500$ $ $338,500$

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

Materials requisition $10$: $ $4,100$ direct materials to Job $402$

Materials requisition $11$: $ $7,700$ direct materials to Job $404$

Materials requisition $12$: $ $1,800$ indirect materials

Labor time ticket $52$: $ $5,000$ direct labor to Job $402$

Labor time ticket $53$: $ $15,000$ direct labor to Job $404$

Labor time ticket $54$: $ $5,000$ 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.

Problem $19-3$A $($Algo$)$ Part $3$

$3.$ Prepare a revised list of account balances as of December $31.$ Hint: Use the prior year's Retained Earnings balance of $$76,000$ in this list.