Problem 2-3A (Static) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4Skip 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 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.

Required information Problem 2-3A (Static) 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. Debit Credit Cash $ 170, 000 Accounts receivable 75,090 Raw materials inventory 80, 090 Work in process inventory Finished goods inventory 15, 090 Prepaid rent 3,060 Accounts payable $ 17,000 Notes payable 25, 900 Common stock 50, 900 Retained earnings (prior year) 271, 000 Sales 373,000 Cost of goods sold 218, 060 Factory overhead 115, 090 General and administrative expenses 60, 090 Totals $ 736,000 $ 736,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: $ 10, 200 direct materials to Job 402 Materials requisition 11: $ 18, 600 direct materials to Job 404 Materials requisition 12: $ 5,600 indirect materials Labor time ticket 52: $ 36,000 direct labor to Job 402 Labor time ticket 53: $ 23, 800 direct labor to Job 404 Labor time ticket 54: $ 8, 200 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost.Problem 2-3A (Static) Part 2 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 2A Req 2B In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. Factory Overhead Actual overhead (given) 26,000 Indirect materials 2,000 Indirect labor Underapplied overhead Problem 2-3A (Static) Part 1 a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. Required: 1. Use the document information above to prepare journal entries for the above costs. Answer is complete and correct. No Transaction General Journal Debit Credit 1 a. Work in process inventory 28,800 Raw materials inventory 28,800 2 b. Work in process inventory 59,800 Factory wages payable 59,800 3 C. Work in process inventory 119,600 Factory overhead 119,600 4 d. Factory overhead 5,600 Raw materials inventory 5,600 5 e. Factory overhead 8,200 Factory wages payable 8,200