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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. 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 i 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 BERGO BAY COMPANY List of Account Balances December 31 Debit $ 170,000 Common stock Retained earnings (prior year) 75,000 80,000 0 15,000 3,000 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 5211 Labor time ticket 531 $ 10,200 direct materials to Job 402 $ 18,600 direct materials to Job 404 $ 5,600 indirect materials $36,000 direct labor to Job 402 $23,800 direct labor to Job 404 $ 8,200 indirect labor Labor time ticket 54: Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. Debit 218,000 115,000 60,000 $ 736,000 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. $ 17,000 25,000 50,000 271,000 373,000 Credit $ 736,000

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 i 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 BERGO BAY COMPANY List of Account Balances December 31 Debit $ 170,000 Common stock Retained earnings (prior year) 75,000 80,000 0 15,000 3,000 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 5211 Labor time ticket 531 $ 10,200 direct materials to Job 402 $ 18,600 direct materials to Job 404 $ 5,600 indirect materials $36,000 direct labor to Job 402 $23,800 direct labor to Job 404 $ 8,200 indirect labor Labor time ticket 54: Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. Debit 218,000 115,000 60,000 $ 736,000 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. $ 17,000 25,000 50,000 271,000 373,000 Credit $ 736,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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. 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 Celes Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock These six documents must be processed to bring the accounting records up to date. $ 10,200 direct materials to Job 402 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: $ 18,600 direct materials to Job 404 $ 5,600 indirect materials $36,000 direct labor to Job 402 $ 23,800 direct labor to Job 404 $ 8,200 indirect labor Labor time ticket 531 Labor time ticket 54: Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. 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. BERGO BAY COMPANY List of Account Balances December 31 Retained earnings (prior year) Debit $ 170,000 75,000 80,000 0 15,000 3,000 218,000 115,000 60,000 $ 736,000 Debit Credit $ 17,000 25,000 50,000 271,000 373,000 Credit $ 736,000
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 Celes Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock These six documents must be processed to bring the accounting records up to date. $ 10,200 direct materials to Job 402 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: $ 18,600 direct materials to Job 404 $ 5,600 indirect materials $36,000 direct labor to Job 402 $ 23,800 direct labor to Job 404 $ 8,200 indirect labor Labor time ticket 531 Labor time ticket 54: Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. 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. BERGO BAY COMPANY List of Account Balances December 31 Retained earnings (prior year) Debit $ 170,000 75,000 80,000 0 15,000 3,000 218,000 115,000 60,000 $ 736,000 Debit Credit $ 17,000 25,000 50,000 271,000 373,000 Credit $ 736,000
Required information Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals
Transcribed Image Text:Required information Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals
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