Required information (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. 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 Debit Credit $ 66,000 35,000 22,500 0 6,000 2,000 $ 8,600 11,600 20,000 84,000 176,300 105,000 25,000 39,000 $300,500 $300,500 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: $ 4,500 direct materials to Job 402 $ 8,000 direct materials to Job 404 $ 1,500 indirect materials $ 8,000 direct labor to Job 402 $12,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 100% of direct labor cost. a. Direct materials costs to Work in Process Inventory. b. Direct labor costs to Work in Process Inventory. c. Overhead costs to Work in Process Inventory. d. Indirect materials costs to the Factory Overhead account. e. Indirect labor costs to the Factory Overhead account. Required: 1. Prepare journal entries to assign the above costs. 2-a. Post any entries from part 1 related to factory overhead to the T-account below to determine the amount of under-or overapplied overhead for the year. Determine whether there is any under- or overapplied overhead for the year. 2-b. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material. 3. Prepare a revised trial balance. BERGAMO BAY COMPANY Trial Balance December 31, 2019 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 Sales Cost of goods sold Factory overhead Operating expenses Totals $ 0 $ 0 4. Prepare an income statement for 2019 and a balance sheet as of December 31, 2019. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement for 2019. BERGAMO BAY COMPANY Income Statement For Year Ended December 31, 2019 0 $ 0 Income Statement Balance Sheet BERGAMO BAY COMPANY Balance Sheet December 31, 2019 Assets Inventories 0 Total assets $ 0 Liabilities and equity Total liabilities 0 0 Total stockholders' equity Total liabilities and equity $ 0
