Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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. Notes payable Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Sales Cost of goods sold Debit $ 68,000 37,000 Credit 23,500 0 9,000 3,000 $ 10,800 13,800 30,000 93,000 175,900 Factory overhead General and administrative expenses 113,000 25,000 45,000 Totals $ 323,500 $ 323,500 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: Labor time ticket 53: Labor time ticket 54: $ 4,700 direct materials to Job 402 $ 7,300 direct materials to Job 404 $ 1,500 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. 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $109,400 at the end of the current year. 5. Assume that the $1,500 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets? 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. Notes payable Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Sales Cost of goods sold Debit $ 68,000 37,000 Credit 23,500 0 9,000 3,000 $ 10,800 13,800 30,000 93,000 175,900 Factory overhead General and administrative expenses 113,000 25,000 45,000 Totals $ 323,500 $ 323,500 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: Labor time ticket 53: Labor time ticket 54: $ 4,700 direct materials to Job 402 $ 7,300 direct materials to Job 404 $ 1,500 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. 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $109,400 at the end of the current year. 5. Assume that the $1,500 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following is a representative reaction illustrating the strength of a base and a nucleophile: Observe carefully the course of the reaction. Which of the following statements best describes the...
-
Discussion Topic: Think about what you have learned in chapters 19. What is the most interesting or valuable concept or theory that you have learned? chapter 19. Compare use of arithmetic and...
-
In January 2021 Karl sells a one-quarter interest in a chattel for 2,500. On the date of this sale, the remaining three-quarters interest is valued at 8,500. The chattel had cost Karl 3,850 in...
-
With reference to the data provided in Table P14-6 on, recommend the preferred alternative by using (a) Dominance, (b) Satisficing,
-
This case describes the problems that can occur when trying to coordinate time-off leaves for employees. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion...
-
In a Harris Interactive survey of 1,006 adults, 96% say that they wash their hands when in a public restroom. The margin of error was 3 percentage points. Use the given statistics and margin of error...
-
Branca Inspections Inc. specializes in determining whether a building or houses drainpipes are properly tied into the citys sewer system. The company pours colored chemical through the pipes and...
-
What is technical security for a data communication network?
-
7. Mr. Kapoor had the following bills receivable and bills payable against Mr. Ramanathan. Calculate the average due date when the payment can be made or received without any loss of interest to...
-
A monopolist produces three products: A, B, and C. The demand functions for these three products are given by: QA = 20-PA QB = 12 - PB 28 3 Imagine that producing one unit of the product A requires...
-
Suppose that Equation 2 (Y-F (K, L)-AK03107) represents the production function of both Mexico and Spain. Use the following information to answer the next questions. Country L-Population (million)...
-
A company has collected the following information regarding price and demand for a single product; Monthly demand( units) 750,000 Price(Tshs). 250 250,000 350 It is believed that there is a linear...
-
For which values of a, b, and c will the population of the bacterial colony described by the equation B'(t) = eat-b-ct be the greatest at t = 3? The initial population of the bacterial colony is B(0)...
-
3. Suppose that the market for tea is described by the demand and supply functions Dt = 1005pt + 3pc St= -10 + 2pt And the market for coffee by Dc = 1208pc + 2pt Sc= 10 + 5pc Where pt is the price of...
-
Dubois Inc. loans money to John Kruk Corporation in the amount of $836,000. Dubois accepts an 8% note due in 6 years with interest payable semi annually. After 2 years (and receipt of interest for 2...
-
Chapter 9 Stock Valuation at Ragan Engines Input area: Shares owned by each sibling Ragan EPS Dividend to each sibling Ragan ROE Ragan required return Blue Ribband Motors Corp. Bon Voyage Marine,...
-
Which asset class would best satisfy the Funds diversification strategy? A. Private equity B. Private real estate C. Absolute return hedge fund Eileen Gension is a portfolio manager for Zen-Alt...
-
Based on Exhibit 2 and Parks due diligence, the pension committee should consider investing in: A. Fund A. B. Fund B. C. Fund C. Kevin Kroll is the chair of the investment committee responsible for...
-
Which of Smittands statements regarding short-biased equity strategies is incorrect? A. Statement 1 B. Statement 2 C. Statement 3 Eileen Gension is a portfolio manager for Zen-Alt Investment...
Study smarter with the SolutionInn App