Required information Problem 2-3A (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 Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 78,000 47,000 Credit 28,500 0 9,000 3,000 $ 9,500 12,500 30,000 88,000 210,500 116,000 26,000 43,000 $ 350,500 $ 350,500 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: $ 4,600 direct materials to Job 402 $ 7,600 direct materials to Job 404 $ 1,900 indirect materials $ 6,000 direct labor to Job 402 $ 14,000 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 150% of direct labor cost. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Req 2B In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. Factory Overhead Actual overhead (given) Indirect materials 26,000 1,900 Indirect labor 5,000 Overhead applied 30,000 Overapplied overhead 40,000 Req 2A Req 2B > Cash Accounts receivable Raw materials inventory Answer is not complete. BERGO BAY COMPANY List of Account Balances December 31 Debit Credit $ 78,000 47,000 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 $ 125,000 $ 0 Sales BERGO BAY COMPANY Income Statement For Year Ended December 31 Cost of goods sold Gross profit General and administrative expenses Net loss $ 210,500 116,000 94,500 43,000 $ 51,500 Inventories Total assets Total liabilities Balance Sheet As at December 31 Assets Total equity Total liabilities and equity Liabilities EA 0 0 0 Equity 0 $ 0 Req 4 Income Req 4 Balance Statement Sheet Req 5 Assume that the $1,900 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets on the balance sheet at December 31? Does this error result in overstatement or understatement of total assets < Req 4 Balance Sheet Req 5 >