Problem 15-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 [The following information applies to the questions displayed below.) 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 Debit $ 71,000 40,000 Credit 25,000 9,000 3,000 $ 8,600 Notes payable 11,600 Common stock Retained earnings (prior year) Sales Cost of goods sold 30,000 81,000 191,800 Factory overhead General and administrative expenses 111,000 24,000 40,000 Totals $ 323,000 $ 323,000 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: $ 4,600 direct materials to Job 402 $ 7,800 direct materials to Job 404 $ 1,600 indirect materials $ 6,000 direct labor to Job 402 Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 7,800 direct materials to Job 404 $ 1,600 indirect materials $ 6,000 direct labor to Job 402 $ 14,000 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 100% of direct labor cost. Problem 15-3A (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 $81,000 in this list. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wanos navahlo BERGO BAY COMPANY List of Account Balances December 31 Debit Credit Required information Problem 15-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 [The following information applies to the questions displayed below] 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 Debit $ 71,000 40,000 Credit 25,000 0 9,000 3,000 $ 8,600 Notes payable 11,600 Common stock Retained earnings (prior year) Sales Cost of goods sold 30,000 81,000 191,800 Factory overhead General and administrative expenses 111,000 24,000 40,000 Totals $ 323,000 $ 323,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: M 47. $ 4,600 direct materials to Job 402 $ 7,800 direct materials to Job 404 1 Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 7,800 direct materials to Job 404 $ 1,600 indirect materials $ 6,000 direct labor to Job 402 $ 14,000 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 100% of direct labor cost. Problem 15-3A (Algo) Parts 4 and 5 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $111,200 at the end of the current year. 5. Assume that the $1,600 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Req 4 Income Req 4 Balance Statement Sheet Prepare an income statement. Req 5 BERGO BAY COMPANY Income Statement For Year Ended December 31 Req 4 Income Req 4 Balance Statement Sheet Req 5 Prepare a balance sheet as of December 31. BERGO BAY COMPANY Balance Sheet As at December 31 Inventories Total assets Assets Liabilities Required information of the current year. 5. Assume that the $1,600 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Req 4 Income Req 4 Balance Statement Sheet Req 5 Assume that the $1,600 on materials requisition 12 should have been direct materials charged to Job 404. Does this error 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 < Req 4 Balance Sheet Req 5 >