The following information applies to the questions displayed below.] Bergamo Bay's computer system generated the following trial balance on December 31, 2015. 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 Payroll Payable) has not been recorded Debit Credit 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 $ 73,000 48,000 29,000 6,000 2,000 $ 10,500 13,500 20,000 80,000 219,000 108,000 31,000 46,000 Totals $343,000 $343,000 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 $4,200 direct materials to Job 402 $7,600 direct materials to Job 404 $2,500 indirect materials Materials requisition 21-3010: Materials requisition 21-3011: Materials requisition 21-3012: Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: 7,000 direct labor to Job 402 $10,000 direct labor to Job 404 $ 2,000 indirect labor Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 150% 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 View transaction list Journal entry worksheet 2 4. 5 Record the entry to allocate overheads to Jobs 402 and 404 at 150% of direct labor costs assigned. Note: Enter debits before credits. Transaction General Journal Debit Credit Work in process inventory Factory overhead Record entry Clear entry View general journal 2.1 Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year. Revised Factory Overhead account Ending balance from trial balance Indirect labor Indirect materials 31,000 2,000 2,500 15,000 jOverhead applied Underapplied overhead 20,500 2.2 Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material 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 Dec. 31 Cost of goods sold Factory overhead Record entry Clear entry View general journal 3. Prepare a revised trial balance. BERGAMO BAY COMPANY Trial Balance December 31, 2015 Debit Credit 73,000 48,000 29,000 0 6,000 2,000 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 10,500 13,500 $158,000$ 24,000 4.1 Prepare an income statement for year 2015. BERGAMO BAY COMPANY Income Statement For Year Ended December 31, 2015 4.2 Prepare a balance sheet as of December 31, 2015 BERGAMO BAY COMPANY Balance Sheet December 31, 2015 Assets Inventories Total assets Liabilities and equity Total liabilities Total stockholders' equity Total liabilities and equity