Problem 15-3A (Algo) Computing and recording job costs; preparing Income statement and balance sheet LO P1, P2, P3, P4 [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. Debit Credit Accounts receivable Raw materials inventory Work in process inventory s inventory 4 rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals 100,000 35,000 "roblem 15-3A (Algo) Part 3 $ 11,800 14,800 30,000 81,000 187,000 $325,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 18: Materials requisition 11: Materials requisition 12: Labor tine ticket 52. $4,780 direct materials to Job 482 $7,380 direct materials to Job 484 $1,680 indirect materials Labor tine ticket 53. $7,000 direct labor to Job 482 $13,000 direct labor to Job 434 $5,000 indirect labor Labor tine 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
Problem 15-3A (Algo) Computing and recording job costs; preparing Income statement and balance sheet LO P1, P2, P3, P4 [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. Debit Credit Accounts receivable Raw materials inventory Work in process inventory s inventory 4 rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals 100,000 35,000 "roblem 15-3A (Algo) Part 3 $ 11,800 14,800 30,000 81,000 187,000 $325,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 18: Materials requisition 11: Materials requisition 12: Labor tine ticket 52. $4,780 direct materials to Job 482 $7,380 direct materials to Job 484 $1,680 indirect materials Labor tine ticket 53. $7,000 direct labor to Job 482 $13,000 direct labor to Job 434 $5,000 indirect labor Labor tine 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Required information
Problem 15-3A (Algo) Computing and recording job costs; preparing Income statement and balance
sheet LO P1, P2, P3, P4
[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
Accounts receivable
Raw materials inventory
work in process inventory
Finished goods inventory
Prepaid rent
accounts parable
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
BERGO BAY COMPANY
List of Account Balances
December 31
Common stock
Retained eamings (prior year)
Sales
Cost of goods sold
Factory overhead
General and administrative expenses
Totals
Shemale
Debit
$ 74,000
a
Debit
3,000
These six documents must be processed to bring the accounting records up to date.
$4,788 direct materials to Job 482
$ 7,388 direct materials to Job 484
Materials requisition 18:
Materials requisition 11
Materials requisition 12:
Labor time ticket 52:
Labor time ticket 53:
$ 1,688 indirect materials
$7,888 direct labor to Job 482
$ 13,888 direct labor to Job 434
$5,000 indirect labor
Labor time ticket 54:
Jobs 402 and 404 are the only jobs in process st year-end. The predetermined overhead rate is 150% of direct labor cost.
26,000
35,000
$325,500
Problem 15-3A (Algo) Part 3
3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $81,000 in this
$ 11,800
14,800
81,000
187,000
Credit
$325,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe26c8f8d-7152-4fa4-bb7e-a199e05b3e8e%2F59aeeb4c-17a2-4bcb-9c4f-aff0e305e83c%2Fr6zu0dq_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 15-3A (Algo) Computing and recording job costs; preparing Income statement and balance
sheet LO P1, P2, P3, P4
[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
Accounts receivable
Raw materials inventory
work in process inventory
Finished goods inventory
Prepaid rent
accounts parable
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
BERGO BAY COMPANY
List of Account Balances
December 31
Common stock
Retained eamings (prior year)
Sales
Cost of goods sold
Factory overhead
General and administrative expenses
Totals
Shemale
Debit
$ 74,000
a
Debit
3,000
These six documents must be processed to bring the accounting records up to date.
$4,788 direct materials to Job 482
$ 7,388 direct materials to Job 484
Materials requisition 18:
Materials requisition 11
Materials requisition 12:
Labor time ticket 52:
Labor time ticket 53:
$ 1,688 indirect materials
$7,888 direct labor to Job 482
$ 13,888 direct labor to Job 434
$5,000 indirect labor
Labor time ticket 54:
Jobs 402 and 404 are the only jobs in process st year-end. The predetermined overhead rate is 150% of direct labor cost.
26,000
35,000
$325,500
Problem 15-3A (Algo) Part 3
3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $81,000 in this
$ 11,800
14,800
81,000
187,000
Credit
$325,500
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