Required information[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 managerknows 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.CashAccounts receivableRaw materials inventoryWork in process inventoryFinished goods inventoryPrepaid rentAccounts payableNotes payableCommon stockRetained earnings (prior year)SalesCost of goods soldFactory overheadGeneral and administrative expensesTotalsDebit$ 77,00046,00028,000Req 4 Income Req 4 BalanceStatementSheetPrepare an income statement.06,0002,000113,00027,00038,000$ 337,000Req 5BERGO BAY COMPANYIncome StatementFor Year Ended December 31CreditThese 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:$ 10,10013,100$4,100 direct materials to Job 402$ 7,300 direct materials to Job 404$2,000 indirect materials$ 6,000 direct labor to Job 402$ 14,000 direct labor to Job 404.$5,000 indirect laborJobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost.20,00083,000210,8004. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $128,800 at theend of the current year.5. Assume that the $2,000 on materials requisition 12 should have been direct materials charged to Job 404. Does this error resultin overstatement or understatement of total assets?< Req 4 Income Statement$ 337,000Complete this question by entering your answers in the tabs below.Req 4 Balance Sheet >

Factory overhead It is the costs incurred during the manufacturing process and it is not including…

4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $128,800 at the end of the current year. 5. Assume that the $2,000 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets?

4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $128,800 at the end of the current year. 5. Assume that the $2,000 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets?

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter3: Ethics, Fraud, And Internal Control

Section: Chapter Questions

Problem 13P

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Required information [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. 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 Debit $ 65,000 34,000 22,000 Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: 0 9,000 3,000 Credit $ 9,600 12,600 30,000 92,000 185,800 120,000 24,000 53,000 $ 330,000 $ 330,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition…
Required information [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. 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 Debit $ 78,000 47,000 28,500 0 12,000 4,000 110,000 26,000 39,000 $344,500 Credit $ 9,200 12, 200 40,000 89,000 194, 100 $344,500 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: $4,500 direct…
Required information [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. 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 Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock BERGO BAY COMPANY List of Account Balances December 31 Retained earnings (prior year) Sales Cost of goods sold Debit $ 69,000 38,000 24,000 0 12,000…
Required information [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 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 Income Statement Balance Sheet These six documents must be processed to bring the accounting records up to date. $4,600 direct materials to Job 402 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: $ 7,400 direct materials to Job 404 $ 2,200 indirect materials Labor time…
[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 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 Debit $ 73,000 42,000 26,000 0 12,000 4,000 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: 111,000 27,000 37,000 $ 332,000 $ 10,700 13,700 40,000 91,000 176,600 $ 332,000 These six documents must be processed to bring the accounting records…
! Required information [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. 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 Debit $ 67,000 36,000 23,000 0 12,000 4,000 116,000 27,000 54,000 $ 339,000 Credit $ 10,000 13,000 40,000 86,000 190,000 $ 339,000 These six documents must be processed to Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 13,000…
! Required information [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. 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 Cash Accounts receivable Raw materials inventory Work in process inventory Debit $ 70,000 39,000 24,500 BERGO BAY COMPANY List of Account Balances December 31 0 6,000 2,000 Debit These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials…
[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 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 Debit $ 170,000 75,000 80,000 0 15,000 3,000 218,000 115,000 60,000 $ 736,000 $ 17,000 25,000 50,000 271,000 373,000 $ 736,000 These six documents must be processed to bring the accounting records up to date. $ 10,200 direct materials to Job 402 $ 18,600 direct materials to Job 404 $ 5,600 indirect materials Materials requisition 10:…
[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. 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 Debit $ 170,000 75,000 80,000 0 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: 15,000 3,000 Labor time ticket 53: Labor time ticket 54: 218,000 115,000 60,000 $ 736,000 Credit $ 17,000 25,000 50,000 271,000 373,000 These six documents must be processed to bring the accounting records up to date.…
[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. 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 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Debit $ 170,000 75,000 80,000 0 15,000 3,000 Labor time ticket 53: Labor time ticket 54: 218,000 115,000 60,000 $ 736,000 Credit $ 17,000 25,000 50,000 271,000 373,000 These six documents must be processed to bring the accounting records up to date.…
Required information [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 $ 79,000 Cash Accounts receivable Raw materials inventory 48,000 29,000 0 Work in process inventory Finished goods inventory Prepaid rent 9,000 3,000 Accounts payable $ 9,600 12,600 Notes payable Common stock 30,000 Retained earnings (prior year). 93,000 Sales 189,800 Cost of goods sold 102,000 Factory overhead 27,000 General and administrative expenses 38,000 Totals $ 335,000 $ 335,000 These six documents must be processed to bring the accounting records up to date. $ 4,800 direct materials to Job 402 $ 7,100 direct materials to Job 404 Materials requisition 10: Materials…
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 Debit $ 75,000 44,000 Credit 27,000 0 9,000 3,000 $ 9,600 12,600 30,000 90,000 204,800 115,000 25,000 49,000 $ 347,000 $ 347,000 These six documents must be processed to bring the accounting records up to da Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,000 direct materials to Job 402 $ 7,700 direct materials to Job…