$\backslash$table$[[$Raw materials inventory,$25,000,],[$Work in process inventory,$0,],[$Finished goods inventory,$9,000,],[$Prepaid rent,$3,000,],[$Accounts payable,$$11,400,],[$Notes payable,$14,400,],[$Common stock,$30,000,],[$Retained earnings $($prior year$),86,000,],[$Sales$,189,200,],[$Cost of goods sold,,$],[$Factory overhead,$104,000,],[$General and administrative expenses,$26,000,],[$Totals$,53,000,]]$

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

Materials requisition $10$: $$4,000$ direct materials to Job $402$

Materials requisition $11$: $$7,700$ direct materials to Job $404$

Materials requisition $12$ : $$2,400$ indirect materials

Labor time ticket $52$: $$5,000$ direct labor to Job $402$

Labor time ticket $53$: $$15,000$ 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 $100\%$ of direct labor cost.

$4.$ Prepare an income statement for the year and a balance sheet as of December $31.$ Hint: Retained earnings is $$104,800$ at the end of the current year.

$5.$ Assume that the $$2,400$ 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.

$\backslash$table$[[$ Req $4$ Income

Statement $,$ Req

Shelance

Sheet