Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows...

 

  
 

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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 $ 74,000 43,000 26,500 0 9,000 3,000 104,000 27,000 48,000 $ 334,500 Credit $8,700 11,700 30,000 94,000 190, 100 $ 334,500 These six documents must be processed to bring the accounting records up to date. $ 4,900 direct materials to Job 402 $ 7,300 direct materials to Job 404 $2,200 indirect materials Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 8,000 direct labor to Job 402 $ 12,000 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 100% of direct labor cost. Problem 2-3A (Algo) Part 2 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Req 2A Req 2B In Factory Overhead T-account, enter amounts from part 1 related to factory overhead Determine the amount of over- or underapplied overhead. Actual overhead (given) Indirect materials Indirect labor Factory Overhead 27,000 2,200 5,000 Record the entry to allocate any overapplied or underapplied overhead. Note: Enter debits before credits. Date December 31 Cost of goods sold Factory overhead General Journal Debit 4,200 Credit 4,200 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 $ 74,000 43,000 26,500 0 9,000 3,000 104,000 27,000 48,000 $ 334,500 Credit $8,700 11,700 30,000 94,000 190, 100 $ 334,500 These six documents must be processed to bring the accounting records up to date. $ 4,900 direct materials to Job 402 $ 7,300 direct materials to Job 404 $2,200 indirect materials Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 8,000 direct labor to Job 402 $ 12,000 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 100% of direct labor cost. Problem 2-3A (Algo) Part 2 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Req 2A Req 2B In Factory Overhead T-account, enter amounts from part 1 related to factory overhead Determine the amount of over- or underapplied overhead. Actual overhead (given) Indirect materials Indirect labor Factory Overhead 27,000 2,200 5,000 Record the entry to allocate any overapplied or underapplied overhead. Note: Enter debits before credits. Date December 31 Cost of goods sold Factory overhead General Journal Debit 4,200 Credit 4,200

Answer rating: 100% (QA)

Journal entries to assign the above cost are as follows Transaction General Journal Deb... View the full answer