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[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.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 17E: Nelson Fabrication Inc. had a remaining credit balance of $20,000 in its under- and overapplied...
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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 $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
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.
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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