Bergamo Bay Co. uses enterprise resource planning (ERP) system to combine the business activities with accounting...

  

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Bergamo Bay Co. uses enterprise resource planning (ERP) system to combine the business activities with accounting activities. ERP system provides an integrated and continuously updated view of core business processes. The system can track business resources, i.e. cash, raw materials, etc., and shares data across various departments accounting, etc.), and various stakeholders of the company. The system information and report to variable users within the company. On December 31, 2019 ERP system generated the following trial balance. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Payroll and Factory Overhead account. (manufacturing, purchasing, sales, also can provide timely Debit s67.200 Credit Cash 58,800 Accounts receivable Raw materials inventory 36,400 Work in process inventory o Finished goods inventory Prepaid rent Accounts payable Notes payable 12,600 4.200 S14,700 18,900 42,000 121,800 252,000 Common stock Retained earmings Sales 147,000 22,400 Cost of goods sold Factory payroll Factory overhead Operating expenses Totals 37,800 63,000 s449,400 s449,400 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date. Materials requisition 21-3010:S 6,440 Materials requisition 21-3011:s10,640 Materials requisition 21-3012: S 2.940 direct materials to Job 402 direct materials to Job 404 lindirect materials S 7.000 11.200 S 4,200 direct labor to Job 402 direct labor to Job 404 indirect labor Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: Jobs 402 and 404 are the only units in process at year- end. The predetermined overhead rate is 200% of direct labor cost. Required: (13 marks) (1) Prepare journal entries to assign the costs below: (a) Direct materials costs to Work in Process Inventory. (2 marks) (b) Direct labor costs to Work in Process Inventory. (2 marks) (c) Overhead costs to Work in Process Inventory. (2 marks) (d) Indirect materials costs to the Factory Overhead account. (2 marks) (e) Indirect labor costs to the Factory Overhead account. (2 marks) (2) According the entries from part (1) related to factory overhead, determine the amount of under- or overapplied overhead for the year. (1 marks) (3) Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material. (2 marks) Bergamo Bay Co. uses enterprise resource planning (ERP) system to combine the business activities with accounting activities. ERP system provides an integrated and continuously updated view of core business processes. The system can track business resources, i.e. cash, raw materials, etc., and shares data across various departments accounting, etc.), and various stakeholders of the company. The system information and report to variable users within the company. On December 31, 2019 ERP system generated the following trial balance. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Payroll and Factory Overhead account. (manufacturing, purchasing, sales, also can provide timely Debit s67.200 Credit Cash 58,800 Accounts receivable Raw materials inventory 36,400 Work in process inventory o Finished goods inventory Prepaid rent Accounts payable Notes payable 12,600 4.200 S14,700 18,900 42,000 121,800 252,000 Common stock Retained earmings Sales 147,000 22,400 Cost of goods sold Factory payroll Factory overhead Operating expenses Totals 37,800 63,000 s449,400 s449,400 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date. Materials requisition 21-3010:S 6,440 Materials requisition 21-3011:s10,640 Materials requisition 21-3012: S 2.940 direct materials to Job 402 direct materials to Job 404 lindirect materials S 7.000 11.200 S 4,200 direct labor to Job 402 direct labor to Job 404 indirect labor Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: Jobs 402 and 404 are the only units in process at year- end. The predetermined overhead rate is 200% of direct labor cost. Required: (13 marks) (1) Prepare journal entries to assign the costs below: (a) Direct materials costs to Work in Process Inventory. (2 marks) (b) Direct labor costs to Work in Process Inventory. (2 marks) (c) Overhead costs to Work in Process Inventory. (2 marks) (d) Indirect materials costs to the Factory Overhead account. (2 marks) (e) Indirect labor costs to the Factory Overhead account. (2 marks) (2) According the entries from part (1) related to factory overhead, determine the amount of under- or overapplied overhead for the year. (1 marks) (3) Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material. (2 marks)

Answer rating: 100% (QA)

Primary Working Job 402 Job 404 Total Direct Materials 6440 10640 17080 Direct Labor 7000 11200 1820... View the full answer