Required Information Problem 19-3A (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. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Accounts payable Prepaid rent Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Debit $ 69,000 38,000 Credit 24,000 e 6,000 2,000 $10,000 13,000 20,000 88,000 173,000 Factory overhead i 103,000 25,000 General and administrative expenses 37,000 Totals $ 304,000 $304,000 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: $ 4,300 direct materials to Job 402 $ 7,800 direct materials to Job 404) $1,600 Indirect materials $5,000 direct labor to Job 402 $ 15,000 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 19-3A (Algo) Part 1 a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. Required: 1. Use the document Information above to prepare journal entries for the above costs. View transaction st View journal entry worksheet No Transaction General Journal 1 a Work in process inventory Raw materials inventory 2 b. 3 C 15 d. Work in process inventory Factory wages payable Work in process inventory Factory overhead Factory overhead Raw materials inventory Factory overhead Factory wages payable & Debit Credit 12,100 12,100 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine th underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 2A Req 28 Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. View transaction Ret Journal entry worksheet < Record the entry to allocate any overapplied or underapplied overhead. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal 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: $ 4,300 direct materials to Job 482 $ 7,800 direct materials to Job 404 $ 1,600 indirect materials $ 5,000 direct labor to Job 402 $ 15,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only Jobs in process at year-end. The predetermined overhe Problem 19-3A (Algo) Part 3 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Reti this list BERGO BAY COMPANY List of Account Balances December 31 Debit Credit Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Problem 19-3A (Algo) Parts 4 and 5 4. Prepare an Income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $109,400 at the end of the current year. 5. Assume that the $1,600 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Req 4 Income Req 4 Balance Statement Sheet Prepare an income statement. Req 5 BERGO BAY COMPANY Income Statement For Year Ended December 31 Req 4 Balance Sheet >