Problem $2$

Solve the given problem based on the following information.

The trial balance for Conglomco Company on December $31,2012,$ is incorrect. The accounting

department was able to identify this error because there are zero inventories for goods

in process, but facility payroll and facility overhead accounts are showing balances.

Incorrect Conglomco Company Trial Balance $($for the year ended December $31,2012)$

Category Debit $($$$)$ Credit $($$$)$

Cash $112,200$

Accounts receivable $82,500$

Raw materials inventory $88,000$

Goods in process inventory $0$

Finished goods inventory $16,500$

Prepaid rent $3,300$

Accounts payable $18,700$

Notes payable $27,500$

Common stock $55,000$

Retained earnings $298,100$

Sales $410,300$

Cost of goods sold $239,800$

Facility payroll $74,800$

Facility overhead $126,500$

Operating expenses $66,000$

Totals $809,600809,600$

The accounting department has identified six documents that must be processed in order

to update the trial balance. The following six entries must be posted to the trial balance:

Missing Entries in Trial Balance

$1$ Materials requisition $10$ $$11,220$ direct materials to Job X

$2$ Materials requisition $11$ $$20,460$ direct materials to Job Y

$3$ Materials requisition $12$ $$6,160$ indirect materials

$4$ Labor time ticket $6052$ $$39,600$ direct labor to Job X

$5$ Labor time ticket $6053$ $$26,180$ direct labor to Job Y

$6$ Labor time ticket $6054$ $$9,020$ indirect labor

Once you have completed the journal entries, create a revised balance for the facility

overhead account, reflecting the changes. Is there any under$-$ or overapplied overhead

for the year? Allocate any over$-$ or underapplied overhead to the cost of goods

sold in the adjusted entries. $($Assume the amount is not material.$)$

Revised Facility Overhead Account

Debit$/$Credit

Ending balance from trial balance

Applied to Jobs X and Y

Additional indirect materials

Additional indirect labor

Underapplied overhead

Dec. $31$ Cost of Goods Sold

Factory Overhead