Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 19-3A (Static) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 (The following information applies

image text in transcribed
image text in transcribed
Required information Problem 19-3A (Static) 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. 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 (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals $ 17,000 25,000 50,000 271,000 373,000 218,000 115,000 60,000 5.736,000 $ 736,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 101 Materials requisition 111 Materials requisition 12: Labor time ticket 52 Labor time ticket 531 Labor time ticket 54 $ 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 Jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. 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 list View journal entry worksheet NO Transaction General Journal Debit Credit 1 a Work in process inventory Raw materials inventory 28,800 28,800 2 b. Work in process inventory Factory wages payable 59,800 59,800 3 C Work in process inventory Factory overhead 4 d Factory overhead Raw materials inventory 5,600 5,600 5 e. Factory overhead Factory wages payable

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_2

Step: 3

blur-text-image_3

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

Accounting In Emerging Economies

Authors: Mathew Tsamenyi

1st Edition

1849506256, 9781849506250

More Books

Students also viewed these Accounting questions

Question

Based on the data in Appendix E

Answered: 1 week ago