Required information Problem 19-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 [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. 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 $ 72,000 41,000 25,500 0 15,000 5,000 Credit $ 10,700 13,700 50,000 88,000 172,100 106,000 28,000 42,000 $ 334,500 $ 334,500 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: $ 4,200 direct materials to Job 402 $ 7,900 direct materials to Job 404 $ 1,600 indirect materials. $ 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 150% of direct labor cost. Problem 19-3A (Algo) Parts 4 and 5 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $107,500 at the end of the current year. 5. Assume that the $1,600 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Req 4 Income Req 4 Balance Statement Sheet Req 5 Prepare an income statement. BERGO BAY COMPANY Income Statement For Year Ended December 31 < Req 4 Income Statement Req 4 Balance Sheet > Req 4 Income Req 4 Balance Statement Sheet Req 5 Prepare a balance sheet as of December 31. BERGO BAY COMPANY Balance Sheet As at December 31 Inventories Total assets Total liabilities Total equity Total liabilities and equity Assets Liabilities Equity Complete this question by entering your answers in the tabs below. Req 4 Income Req 4 Balance Statement Sheet Req 5 Assume that the $1,600 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets on the balance sheet at December 31? Does this error result in overstatement or understatement of total assets