Required information (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 $ 67,000 Accounts receivable 36,000 Raw materials inventory 23,000 Work in process inventory Finished goods inventory 9,000 Prepaid rent 3,000 Accounts payable $ 9,800 Notes payable 12,800 Common stock 30,000 Retained earnings (prior year) 85,000 Sales 167,400 Cost of goods sold 105,000 Factory overhead 24,000 General and administrative expenses 38,000 Totals $ 305,000 $ 305,000 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: $ 7,800 direct materials to Job 484 Materials requisition 12: $ 2,500 indirect materials Labor time ticket 52: $ 4,000 direct labor to Job 402 Labor time ticket 53: $ 16,000 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. 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) Reg 2 Req 2B > Reg 2A Reg 2B Prepare the entry to close any over- or underapplied overhead to cost of Goods Sold. View transaction list Journal entry worksheet Record the entry to allocate any overapplied or underapplied overhead. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $85,000 in 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 s 0 S 0 4. Prepare an Income statement for the year and a balance sheet as of December 31. Hint Retained earnings is $107,900 at the end of the current year. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement. BERGO BAY COMPANY Income Statement For Year Ended December 31