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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.

Accounting Information Systems
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter2: Introduction To Transaction Processing
Section: Chapter Questions
Problem 21MCQ
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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
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.
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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