1 No 2 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. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable 3 Notes payable Common stock Retained earnings (prior year). Sales Cost of goods sold Factory overhead General and administrative expenses Totals a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. equired: Use the document information above to prepare journal entries for the above costs. Transaction 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 $ 2,400 indirect materials $5,000 direct labor to Job 402 $ 15,000 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 150% of direct labor cost. 8 b. C. d. e. Work in process inventory Raw materials inventory Work in process inventory Raw materials inventory Debit $ 72,000 41,000 25,500 0 12,000 4,000 Factory overhead Raw materials inventory Work in process inventory Factory wages payable Factory overhead 118,000 25,000 51,000 $ 348,500 Answer is complete but not entirely correct. General Journal Factory wages payable Credit $ 11,600 14,600 40,000 88,000 194,300 $ 348,500 00 *O x X X X ✔ O Debit 4,700 x 7,400 2,400 15,000 Ⓡ 5,000 Ⓡ X O Credit 4,700 7,400 2,400 15,000 5,000
1 No 2 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. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable 3 Notes payable Common stock Retained earnings (prior year). Sales Cost of goods sold Factory overhead General and administrative expenses Totals a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. equired: Use the document information above to prepare journal entries for the above costs. Transaction 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 $ 2,400 indirect materials $5,000 direct labor to Job 402 $ 15,000 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 150% of direct labor cost. 8 b. C. d. e. Work in process inventory Raw materials inventory Work in process inventory Raw materials inventory Debit $ 72,000 41,000 25,500 0 12,000 4,000 Factory overhead Raw materials inventory Work in process inventory Factory wages payable Factory overhead 118,000 25,000 51,000 $ 348,500 Answer is complete but not entirely correct. General Journal Factory wages payable Credit $ 11,600 14,600 40,000 88,000 194,300 $ 348,500 00 *O x X X X ✔ O Debit 4,700 x 7,400 2,400 15,000 Ⓡ 5,000 Ⓡ X O Credit 4,700 7,400 2,400 15,000 5,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:1
2
3
4
No
5
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.
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
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.
Transaction
a.
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:
$4,700 direct materials to Job 402
$ 7,400 direct materials to Job 404
$ 2,400 indirect materials
$5,000 direct labor to Job 402
Labor time ticket 53:
Labor time ticket 54:
$ 15,000 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 150% of direct labor cost.
b.
C
d.
9.
Work in process inventory
Raw materials inventory
Work in process inventory
Raw materials inventory
Factory overhead
Debit
$ 72,000
41,000
25,500
0
12,000
4,000
Answer is complete but not entirely correct.
Raw materials inventory
Work in process inventory
Factory wages payable
118,000
25,000
51,000
$ 348,500
Factory overhead
General Journal
Factory wages payable
Credit
$ 11,600
14,600
40,000
88,000
194,300
$ 348,500
00
OO
*
X
x
X
00
Debit
4,700 x
7,400
2,400
15,000
5,000
Ⓡ
Credit
4,700
7,400
2,400
15,000
5,000
9
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