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. These six documents must be processed to bring the accounting records up to date. Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost. 4. Prepare an income statement for the year and a balance sheet as of December 31 . Hint: Retained earnings is $106,900 at the end of the current year. 5. Assume that the $1,800 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. Prepare an income statement. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ BERGO BAY COMPANY } \\ Balance Sheet \\ As at December 31 \\ \hline \multicolumn{1}{|c|}{ Assets } \\ \hline & \\ \hline Inventories & \\ \hline & \\ \hline Total assets & \\ \hline & \\ \hline Total liabilities & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} Assume that the $1,800 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 orror result in overstatement or understatement of tolal assets