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 date. 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 404 $ 2,000 indirect materials $ 7,000 direct labor to Job 402 $13,000 direct labor to Job 404 $ 5,000 indirect labor dife Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost. 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $118,800 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? Complete this question by entering your answers in the tabs below. Req 4 Income Req 4 Balance Statement Sheet Prepare an Income statement. Req 5 BERGO BAY COMPANY Income Statement For Year Ended December 31 0 $ 0
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 date. 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 404 $ 2,000 indirect materials $ 7,000 direct labor to Job 402 $13,000 direct labor to Job 404 $ 5,000 indirect labor dife Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost. 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $118,800 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? Complete this question by entering your answers in the tabs below. Req 4 Income Req 4 Balance Statement Sheet Prepare an Income statement. Req 5 BERGO BAY COMPANY Income Statement For Year Ended December 31 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 date.
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 404
$ 2,000 indirect materials
$ 7,000 direct labor to Job 402
$13,000 direct labor to Job 404
$ 5,000 indirect labor
dife
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost.
4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $118,800 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?
Complete this question by entering your answers in the tabs below.
Req 4 Income Req 4 Balance
Statement
Sheet
Prepare an Income statement.
Req 5
BERGO BAY COMPANY
Income Statement
For Year Ended December 31
0
$
0
<Req 4 Income Statement
Req 4 Balance Sheet >
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