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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

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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 acrnant:- Jobs 402 and 4 tut aic um uny jovs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. Required 1. Use the document information above to prepare journal entries for the following costs. a. Direct materials. d. Indirect materials. b. Direct labor. e. Indirect labor. c. Overhead applied. 2. Set up a Factory Overhead T-account and enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $271,000 in this list. 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $356,800 at the end of the current year

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