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. Debit Credit Cash $ 79,000 Accounts receivable 48,000 29,000 0 Raw materials inventory 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 93,000 Retained earnings (prior year) 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 $ 2,400 indirect materials Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 7,000 direct labor to Job 402 $ 13,000 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. 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[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 requisition 11:
Materials requisition 12:
Labor time ticket 52:
$ 2,400 indirect materials
$ 7,000 direct labor to Job 402
Labor time ticket 53:
$ 13,000 direct labor to Job 404
$5,000 indirect labor
Labor time ticket 54:
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost.
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.
Transcribed Image Text: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 requisition 11: Materials requisition 12: Labor time ticket 52: $ 2,400 indirect materials $ 7,000 direct labor to Job 402 Labor time ticket 53: $ 13,000 direct labor to Job 404 $5,000 indirect labor Labor time ticket 54: Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost. 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.
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