Problem 19-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The companys 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 $ 67,000 Accounts receivable 36,000 Raw materials inventory 23,000 Work in process inventory 0 Finished goods inventory 12,000 Prepaid rent 4,000 Accounts payable $ 12,000 Notes payable 15,000 Common stock 40,000 Retained earnings (prior year) 77,000 Sales 193,000 Cost of goods sold 118,000 Factory overhead 26,000 General and administrative expenses 51,000 Totals $ 337,000 $ 337,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: $ 4,800 direct materials to Job 402 Materials requisition 11: $ 7,400 direct materials to Job 404 Materials requisition 12: $ 2,200 indirect materials Labor time ticket 52: $ 6,000 direct labor to Job 402 Labor time ticket 53: $ 14,000 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 19-3A (Algo)

Part 1

Direct materials.

Direct labor.

Overhead applied.

Indirect materials.

Indirect labor.

Required: 1. Use the document information above to prepare journal entries for the above costs.

Journal entry worksheet 45 Record direct materials used for Jobs 402 and 404. Note: Enter debits before credits. Journal entry worksheet 5 Record direct labor costs for Jobs 402 and 404. Note: Enter debits before credits. Journal entry worksheet 5 Record the entry to apply overhead to Jobs 402 and 404. Note: Enter debits before credits. Journal entry worksheet 2 Record the indirect materials used. Note: Enter debits before credits. Journal entry worksheet ( 234 Record the indirect labor. Note: Enter debits before credits