Question
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.
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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.
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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.
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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
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