Problem $2-3$A $($Algo$)$ Computing and recording job costs; preparing income statement and balance sheet

LO P$1,$ P$2,$ P$3,$ P$4$

$[$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.

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

Jobs $402$ and $404$ are the only jobs in process at year$-$end. The predetermined overhead rate is $100\%$ of direct labor cost. Prepare a revised list of account balances as of December $31.$ Hint: Use the prior year's Retained Earnings balance of $$77,000$ in this list.

$\backslash$table$[[$BERGO BAY COMPANY,,$],[$List of Account Balances,,$],[$Cash$,$December $31,$Credit$],[$Accounts receivable,,$],[$Raw materials inventory,,$],[$Work in process inventory,,$],[$Finished goods inventory,,$],[$Prepaid rent,,$],[$Accounts payable,,$],[$Factory wages payable,,$],[$Notes payable,,$],[$Common stock,,$],[$Retained earnings $($prior year$),,],[$Sales$,,],[$Cost of goods sold,,$],[$Factory overhead,,$],[$General and administrative expenses,,$],[$Totals$,,]]$

of $12$

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