Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Questions 1 - 4 (of 8)Questions 5 - 8 (of 8) Save & ExitSubmit [The following information applies to the questions displayed below.] Bergamo Bay's

Questions 1 - 4 (of 8)Questions 5 - 8 (of 8) Save & ExitSubmit

[The following information applies to the questions displayed below.]

Bergamo Bay's computer system generated the following trial balance on December 31, 2015. The companys manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Payroll Payable) has not been recorded.

Debit Credit
Cash $ 170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable $ 17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $ 736,000 $ 736,000

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

Materials requisition 21-3010: $ 10,200 direct materials to Job 402
Materials requisition 21-3011: $ 18,600 direct materials to Job 404
Materials requisition 21-3012: $ 5,600 indirect materials
Labor time ticket 6052: $ 36,000 direct labor to Job 402
Labor time ticket 6053: $ 23,800 direct labor to Job 404
Labor time ticket 6054: $ 8,200 indirect labor

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.

5.

value: 10.00 points

Required information

a. Direct materials costs to Work in Process Inventory.
b. Direct labor costs to Work in Process Inventory.
c. Overhead costs to Work in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.

Required:
1.

Prepare journal entries to assign the above costs.

References

WorksheetLearning Objective: 19-P1 Describe and record the flow of materials costs in job order costing.Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order costing.

Difficulty: 3 HardLearning Objective: 19-P2 Describe and record the flow of labor costs in job order costing.Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.

Check my work

6.

value: 10.00 points

Required information

2.1

Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year.

2.2

Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.

References

WorksheetLearning Objective: 19-P1 Describe and record the flow of materials costs in job order costing.Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order costing.

Difficulty: 3 HardLearning Objective: 19-P2 Describe and record the flow of labor costs in job order costing.Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.

Check my work

7.

value: 10.00 points

Required information

3. Prepare a revised trial balance.

References

WorksheetLearning Objective: 19-P1 Describe and record the flow of materials costs in job order costing.Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order costing.

Difficulty: 3 HardLearning Objective: 19-P2 Describe and record the flow of labor costs in job order costing.Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.

Check my work

8.

value: 10.00 points

Required information

4.1

Prepare an income statement for 2015.

4.2

Prepare a balance sheet as of December 31, 2015.

References

WorksheetLearning Objective: 19-P1 Describe and record the flow of materials costs in job order costing.Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order costing.

Difficulty: 3 HardLearning Objective: 19-P2 Describe and record the flow of labor costs in job order costing.Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.

Check my work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions