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 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: 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. $4,500 direct materials to Job 402 $ 7,800 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 Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost.
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 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: 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. $4,500 direct materials to Job 402 $ 7,800 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 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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Question
Transcribed Image Text:3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $89,000 in
this list.
Cash
Accounts receivable
Raw materials inventory
Work in process inventory
Finished goods inventory
Prepaid rent
Accounts payable
BERGO BAY COMPANY
List of Account Balances
December 31
Factory wages payable
Notes payable
Common stock
Retained earnings (prior year)
Sales
Cost of goods sold
Factory overhead
General and administrative expenses
Totals
S
$
Debit
78,000
47,000
12,000
4,000
39,000
180,000
Credit
9,200
25,000
12,200
40,000
89,000
194,000
$ 369,400
![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 materials to Job 402
$7,800 direct materials to Job 404
$ 2,000 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F844b4767-f4e7-4b03-b629-79f1c23f2300%2F46ebbed1-49af-457f-a79b-cd1cfed10832%2F7tbqau_processed.jpeg&w=3840&q=75)
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.
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 materials to Job 402
$7,800 direct materials to Job 404
$ 2,000 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.
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