[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. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ BERGO BAY COMPANY } \\ \multicolumn{1}{|c|}{ Assets } & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Inventories & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline & & \\ \hline Liabilities & \\ \hline & & \\ \hline Total equity & & \\ \hline Total liabilities and equity & & \\ \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 error result in overstatement or understatement of total assets \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ BERGO BAY COMPANY } \\ \hline \multicolumn{3}{|c|}{ List of Account Balances } \\ \hline \multicolumn{3}{|c|}{ December 31} \\ \hline & Debit & Credit \\ \hline Cash & 67,000 & \\ \hline Accounts receivable & 36,000 & \\ \hline Raw materials inventory & & 1,800 \\ \hline Work in process inventory & 11,600 & \\ \hline Finished goods inventory & 6,000 & \\ \hline Prepaid rent & 2,000 & \\ \hline Accounts payable & & 10,100 \\ \hline Factory wages payable & 20,000 & \\ \hline Notes payable & & 13,100 \\ \hline Common stock & & 20,000 \\ \hline Retained earnings (prior year) & & 81,000 \\ \hline Sales & 205,800 & \\ \hline Cost of goods sold & 113,000x & \\ \hline Factory overhead & & 7,800 \\ \hline General and administrative expenses & 55,000 & \\ \hline Totals & $516,400 & $133,800 \\ \hline \end{tabular} Prepare an income statement