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Problem $2-3$A $($Algo$)$ Computing and recording job costs; preparing income statement and balance sheet LO P$1,$ P$2,$ P$3,$ P$4$

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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.

$$DebitCreditCash$ $74,000$Accounts receivable$43,000$Raw materials inventory$26,500$Work in process inventory$0$Finished goods inventory$12,000$Prepaid rent$4,000$Accounts payable$$$ $10,100$Notes payable$13,100$Common stock$40,000$Retained earnings $($prior year$)89,000$Sales$197,300$Cost of goods sold$118,000$Factory overhead$24,000$General and administrative expenses$48,000$Totals$ $349,500$$ $349,500$

These six documents must be processed to bring the accounting records up to date.

Materials requisition $10$:$ $4,800$direct materials to Job $402$Materials requisition $11$:$ $7,800$direct materials to Job $404$Materials requisition $12$:$ $2,300$indirect materialsLabor time ticket $52$:$ $8,000$direct labor to Job $402$Labor time ticket $53$:$ $12,000$direct labor to Job $404$Labor time ticket $54$:$ $5,000$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 $2-3$A $($Algo$)$ Part $3$

$3.$ Prepare a revised list of account balances as of December $31.$ Hint: Use the prior year's Retained Earnings balance of $$89,000$ in this list.