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Problem $15-3$A $($Algo$)$ Computing and recording job costs; preparing income statement and balance sheet LO P$1,$ P$2,$ P$3,$ P$4$

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$[$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 $ $72,000$

Accounts receivable $41,000$

Raw materials inventory $25,500$

Work in process inventory $0$

Finished goods inventory $15,000$

Prepaid rent $5,000$

Accounts payable $ $10,200$

Notes payable $13,200$

Common stock $50,000$

Retained earnings $($prior year$)86,000$

Sales $186,100$

Cost of goods sold $116,000$

Factory overhead $27,000$

General and administrative expenses $44,000$

Totals $ $345,500$ $ $345,500$

These six documents must be processed to bring the accounting records up to date.

Materials requisition $10$: $ $4,300$ direct materials to Job $402$

Materials requisition $11$: $ $7,600$ direct materials to Job $404$

Materials requisition $12$: $ $2,200$ indirect materials

Labor time ticket $52$: $ $7,000$ direct labor to Job $402$

Labor time ticket $53$: $ $13,000$ direct labor to Job $404$

Labor time ticket $54$: $ $5,000$ indirect labor

Jobs $402$ and $404$ are the only jobs in process at year$-$end. The predetermined overhead rate is $150\%$ of direct labor cost.

Problem $15-3$A $($Algo$)$ Part $1$

Direct materials.

Direct labor.

Overhead applied.

Indirect materials.

Indirect labor.

Required:

$1.$ Use the document information above to prepare journal entries for the above costs.