Required information Problem 02-2A Source documents, journal entries, overhead, and financial reports LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Bergamo Bay's computer system generated the following trial balance on December 31, 2019. The company's 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 Wages Payable) has not been recorded. Credit Debit $ 170,000 75,000 80,000 0 15,000 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 Sales Cost of goods sold Factory overhead Operating expenses Totals $ 17,000 25,000 50,000 271,000 373,000 218,000 115,000 60,000 $ 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: Materials requisition 21-3011: Materials requisition 21-3012: Labor time ticket 6052: Labor time ticket 6053 : Labor time ticket 6054: $10,200 direct materials to Job 402 $18, 600 direct materials to Job 404 $ 5,600 indirect materials $36,000 direct labor to Job 402 $23,800 direct labor to Job 404 $ 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. Balance Sheet December 31, 2019 Assets Cash Accounts receivable Inventories Raw materials inventory 45,600 Work in process inventory 148,400 Finished goods inventory 15,000 $ 170,000 75,000 $ 209,000 $ 454,000 Total assets Liabilities and equity Accounts payable Factory wages payable Notes payable Total liabilities Common stock Retained earnings 17,000 68,000 25,000 110,000 50,000 297,000 Total stockholders' equity Total liabilities and equity 347,000 $ 457,000 BERGAMO BAY COMPANY Income Statement For Year Ended December 31, 2019 Sales $ 373,000 Cost of goods sold Gross profit 373,000 Operating expenses 60,000 Net income $ 313,000