[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 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 $ 73,000 42,000 26,000 0 12,000 4,000 111,000 27,000 37,000 $ 332,000 $ 10,700 13,700 40,000 91,000 176,600 $ 332,000 These six documents must be processed to bring the accounting records up to date. $ 4,300 direct materials to Job 402 $ 7,600 direct materials to Job 404 $ 2,300 indirect materials. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 6,000 direct labor to Job 402 $ 14,000 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. 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $91,000 in this list.
[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 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 $ 73,000 42,000 26,000 0 12,000 4,000 111,000 27,000 37,000 $ 332,000 $ 10,700 13,700 40,000 91,000 176,600 $ 332,000 These six documents must be processed to bring the accounting records up to date. $ 4,300 direct materials to Job 402 $ 7,600 direct materials to Job 404 $ 2,300 indirect materials. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 6,000 direct labor to Job 402 $ 14,000 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. 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $91,000 in this list.
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 $91,000 in this
list.
BERGO BAY COMPANY
List of Account Balances
December 31
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
$
Debit
73,000
42,000
Credit
25,000
$ 115,000 $ 25,000
![[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.
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.
Factory overhead
General and administrative expenses
Totals
Debit
$ 73,000
42,000
26,000
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:
111,000
27,000
37,000
$ 332,000
$ 10,700
13,700
40,000
91,000
176,600
$ 332,000
These six documents must be processed to bring the accounting records up to date.
$ 4,300 direct materials to Job 402
$7,600 direct materials to Job 404
$ 2,300 indirect materials
$6,000 direct labor to Job 402
$ 14,000 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.
3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $91,000 in this
list.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2Fa9ff9b78-3b4b-4515-bd21-f4333a9991cc%2Fe6bich_processed.jpeg&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.
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.
Factory overhead
General and administrative expenses
Totals
Debit
$ 73,000
42,000
26,000
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:
111,000
27,000
37,000
$ 332,000
$ 10,700
13,700
40,000
91,000
176,600
$ 332,000
These six documents must be processed to bring the accounting records up to date.
$ 4,300 direct materials to Job 402
$7,600 direct materials to Job 404
$ 2,300 indirect materials
$6,000 direct labor to Job 402
$ 14,000 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.
3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $91,000 in this
list.
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