[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 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Debit $ 170,000 75,000 80,000 0 15,000 3,000 Labor time ticket 53: Labor time ticket 54: 218,000 115,000 60,000 $ 736,000 Credit $ 17,000 25,000 50,000 271,000 373,000 These six documents must be processed to bring the accounting records up to date. $ 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 Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. $ 736,000
[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 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Debit $ 170,000 75,000 80,000 0 15,000 3,000 Labor time ticket 53: Labor time ticket 54: 218,000 115,000 60,000 $ 736,000 Credit $ 17,000 25,000 50,000 271,000 373,000 These six documents must be processed to bring the accounting records up to date. $ 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 Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. $ 736,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:a. Direct materials.
b. Direct labor.
c. Overhead applied.
d. Indirect materials.
e. Indirect labor.
Required:
1. Use the document information above to prepare journal entries for the above costs.
View transaction list
Journal entry worksheet
1 2 3
Record direct materials used for Jobs 402 and 404.
Note: Enter debits before credits.
Transaction
a.
4 5
General Journal
Debit
Credit
![[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
Materials requisition 10:
Materials requisition 11:
Materials requisition 12:
Labor time ticket 52:
Debit
$ 170,000
75,000
80,000
0
15,000
3,000
Labor time ticket 53:
Labor time ticket 54:
218,000
115,000
60,000
$ 736,000
Credit
$ 17,000
25,000
50,000
271,000
373,000
These six documents must be processed to bring the accounting records up to date.
$ 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
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
$ 736,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96ccea39-6e20-4e83-b9fb-b22d2ae10407%2F087a40a1-26c4-4dee-8ac1-6d3ecb39c45d%2Fea4tjza_processed.png&w=3840&q=75)
Transcribed Image Text:[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
Materials requisition 10:
Materials requisition 11:
Materials requisition 12:
Labor time ticket 52:
Debit
$ 170,000
75,000
80,000
0
15,000
3,000
Labor time ticket 53:
Labor time ticket 54:
218,000
115,000
60,000
$ 736,000
Credit
$ 17,000
25,000
50,000
271,000
373,000
These six documents must be processed to bring the accounting records up to date.
$ 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
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
$ 736,000
Expert Solution

Step 1 Introduction
Journal Entry :— It is an act of recording transaction in books of account when transaction occurred.
General Rule :—
- Debit the receiver, credit the giver.
- Debit what comes in, credit what goes out.
- Debit all expenses & losses, credit all incomes & gains.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education