(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. Credit Debit $ 66,000 35,000 22,500 0 12,000 4,000 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 $ 11,900 14,900 40,000 83,000 177,700 108,000 26,000 54,000 $ 327,500 $ 327,500 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: $ 4,700 direct materials to Job 402 $ 7,400 direct materials to Job 404 $ 1,500 indirect materials $ 4,000 direct labor to Job 402 $ 16,000 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 100% of direct labor cost. a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. Required: 1. Use the document information above to prepare journal entries for the above costs. View transaction list Record direct materials used for Jobs 402 and 404. > > 2 Record direct labor costs for Jobs 402 and 404. 3 Record the entry to apply overhead to Jobs 402 and 404. 4 Record the indirect materials used. 5 Record the indirect labor. Credit Note : = journal entry has been entered Record entry Clear entry View general journal 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Reg 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) 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 $83,000 in this list. Credit BERGO BAY COMPANY List of Account Balances December 31 Debit 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 Prepare an income statement for the year and a balance sheet the current year. Of December 31. Hint. Retained earnings is $86,200 at the end of 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 Income Statement Balance Sheet Prepare a balance sheet as of December 31. BERGO BAY COMPANY Balance Sheet As at December 31 Assets Inventories Total assets Liabilities Total liabilities Equity Total equity Total liabilities and equity
