Bergo Bay's accounting system generated the following account balances on December 31. The company?s manager knows something
Fantastic news! We've Found the answer you've been seeking!
Question:
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.
| Debit | Credit | |
|---|---|---|
| Cash | $ 170,000 | |
| Accounts receivable | 75,000 | |
| Raw materials inventory | 80,000 | |
| Work in process inventory | 0 | |
| Finished goods inventory | 15,000 | |
| Prepaid rent | 3,000 | |
| Accounts payable | $ 17,000 | |
| Notes payable | 25,000 | |
| Common stock | 50,000 | |
| Retained earnings (prior year) | 271,000 | |
| Sales | 373,000 | |
| Cost of goods sold | 218,000 | |
| Factory overhead | 115,000 | |
| General and administrative expenses | 60,000 | |
| Totals | $ 736,000 | $ 736,000 |
These six documents must be processed to bring the accounting records up to date.
| Materials requisition 10: | $ 10,200 | direct materials to Job 402 |
|---|---|---|
| Materials requisition 11: | $ 18,600 | direct materials to Job 404 |
| Materials requisition 12: | $ 5,600 | indirect materials |
| Labor time ticket 52: | $ 36,000 | direct labor to Job 402 |
| Labor time ticket 53: | $ 23,800 | direct labor to Job 404 |
| Labor time ticket 54: | $ 8,200 | indirect labor |
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
- Direct materials.
- Direct labor.
- Overhead applied.
- Indirect materials.
- Indirect labor.
Required:
1. Use the document information above to prepare journal entries for the above costs.
Expert Answer:
Record direct materials used for Jobs 402 and 404 General Journal Account Name Debit Credit Work in ... View the full answer
Posted Date:
