Project question 1

Problem 2-3A (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. Credit Debit $72,000 41,000 25,500 9,000 3,000 Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals $ 11,700 14,700 30,000 85,000 190, 100 118,000 26,000 37,000 $ 331,500 $ 331,500 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: Labor time ticket 53: Labor time ticket 54: $ 4,800 direct materials to Job 402 $ 7,400 direct materials to Job 404 $ 2,300 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 2-3A (Algo) Part 1 a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. the above costs 2 3 4 5 Record direct materials used for Jobs 402 and 404. ote: Enter debits before credits. Credit Debit General Journal Transaction a. N Record the entry to apply overhead to Jobs 402 and 404. Note: Enter debits before credits. Credit Debit General Journal Transaction C. 1 2. 3 4 5 Record the indirect materials used. Note: Enter debits before credits. Debit Credit Transaction General Journal d. M 1 2. 3 4 5 Record the indirect labor. Note: Enter debits before credits. Debit Credit General Journal Transaction e. 2 3 4 5 Accounts payable Accounts receivable Accumulated depreciation ebi Cash Det 1 3 4 5 N Common stock d the i Cost of goods sold Factory overhead ter debi Factory wages payable Finished goods inventory Debit action 1 2 3 4 5 General and administrative expenses the i Notes payable Prepaid rent Raw materials inventory er debi Retained earnings Det iction 3 4 5 2