!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 managerknows 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.CashAccounts receivableRaw materials inventoryWork in process inventoryFinished goods inventoryPrepaid rentAccounts payableNotes payableCommon stockRetained earnings (prior year)SalesCost of goods soldFactory overheadGeneral and administrative expensesTotalsDebit$ 77,00046,00028,00009,0003,000108,00026,00049,000$ 346,000Credit$ 10,00013,00030,00082,000211,000$ 346,000These 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:Labor time ticket 53:Labor time ticket 54:$4,700 direct materials to Job 402$ 7,300 direct materials to Job 404$ 1,900 indirect materials$ 4,000 direct labor to Job 402$ 16,000 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.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.

The journal entries are prepared to record the transactions on regular basis. The direct costs are…

These six documents must be processed to bring the accounting records up to date. $ 4,700 direct materials to Job 402 $ 7,300 direct materials to Job 404 $ 1,900 indirect materials Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,000 direct labor to Job 402 $ 16,000 direct labor to Job 404 $5,000 indirect labor

These six documents must be processed to bring the accounting records up to date. $ 4,700 direct materials to Job 402 $ 7,300 direct materials to Job 404 $ 1,900 indirect materials Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,000 direct labor to Job 402 $ 16,000 direct labor to Job 404 $5,000 indirect labor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information (The following information applies to the questions displayed below.) At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. Job 5 $ 15, 400 8, 400 4, 200 Job 6 $ 33, 200 14, 600 7, 300 At June 30 Job 7 Direct materials $ 27, 200 21,400 10, 700 Direct labor Overhead applied Additional Information a. Job 5 was started in May, and the following costs were assigned to it in May: direct materials, $6,200; direct labor, $2,000; and applied overhead, $1,100. Job 5 was finished in June. b. Job 6 and Job 7 were started in June; Job 6 was finished in June, and Job 7 is to be completed in July. c. Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months. 3. What is the predetermined overhead rate? Predetermined overhead rate
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