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Required information [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 $ 76,000 45,000 27,500 0 12,000 4,000 Credit $ 11, 200 14, 200 40,000 78,000 191, 100 108,000 25,000 37,000 $ 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: $4,400 direct materials to Job 402 $7,500 direct materials to Job 404 $1,900 indirect materials $4,000 direct labor to Job 402 Labor time ticket 53: $ 16,000 direct labor to Job 404 $5,000 indirect labor Labor time ticket 54: Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost.

Required information [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 $ 76,000 45,000 27,500 0 12,000 4,000 Credit $ 11, 200 14, 200 40,000 78,000 191, 100 108,000 25,000 37,000 $ 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: $4,400 direct materials to Job 402 $7,500 direct materials to Job 404 $1,900 indirect materials $4,000 direct labor to Job 402 Labor time ticket 53: $ 16,000 direct labor to Job 404 $5,000 indirect labor Labor time ticket 54: Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost.

Accounting Information Systems
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter2: Introduction To Transaction Processing
Section: Chapter Questions
Problem 21MCQ
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Required information [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 $ 76,000 45,000 27,500 0 12,000 4,000 108,000 25,000 37,000 $ 334,500 Credit $ 11, 200 14, 200 40,000 78,000 191,100 $ 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: $4,400 direct materials to Job 402 $7,500 direct materials to Job 404 $1,900 indirect materials Labor time ticket 53: Labor time ticket 54: $ 4,000 direct labor to Job 402 $ 16,000 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.
Transcribed Image Text:Required information [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 $ 76,000 45,000 27,500 0 12,000 4,000 108,000 25,000 37,000 $ 334,500 Credit $ 11, 200 14, 200 40,000 78,000 191,100 $ 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: $4,400 direct materials to Job 402 $7,500 direct materials to Job 404 $1,900 indirect materials Labor time ticket 53: Labor time ticket 54: $ 4,000 direct labor to Job 402 $ 16,000 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.
4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $112,200 at the end of the current year. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement. BERGO BAY COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit General and administrative expenses Total assets Total liabilities $ 0 Total equity Total liabilities and equity 0 < Income Statement Prepare a balance sheet as of December 31. BERGO BAY COMPANY Balance Sheet As at December 31 Assets Inventories Balance Sheet > Liabilities Equity $ $ 0 0 0 0 0
Transcribed Image Text:4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $112,200 at the end of the current year. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement. BERGO BAY COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit General and administrative expenses Total assets Total liabilities $ 0 Total equity Total liabilities and equity 0 < Income Statement Prepare a balance sheet as of December 31. BERGO BAY COMPANY Balance Sheet As at December 31 Assets Inventories Balance Sheet > Liabilities Equity $ $ 0 0 0 0 0
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