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. Debit Credit Cash $ 68,000 Accounts receivable 37,000 Raw materials inventory 23,500 Work in process inventory 0 Finished goods inventory 6,000 Prepaid rent 2,000 Accounts payable $9,000 Notes payable 12,000 Common stock 20,000 Retained earnings (prior year) 94,000 Sales 169,500 Cost of goods sold 100,000 Factory overhead 27,000 General and administrative expenses 41,000 Totals $ 304,500 $ 304, 500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: $4,600 direct materials to Job 402 Materials requisition 11: $ 7,200 direct materials to Job 404 Materials requisition 12: $ 1,500 indirect materials Labor time ticket 52: $ 5,000 direct labor to Job 402 Labor time ticket 53: $ 15,000 direct labor to Job 404 Labo 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. Direct materials. Direct labor. Overhead applied. Indirect materials. Indirect labor. Required: 1. Use the document information above to prepare journal entries for the above costs.
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. Debit Credit Cash $ 68,000 Accounts receivable 37,000 Raw materials inventory 23,500 Work in process inventory 0 Finished goods inventory 6,000 Prepaid rent 2,000 Accounts payable $9,000 Notes payable 12,000 Common stock 20,000 Retained earnings (prior year) 94,000 Sales 169,500 Cost of goods sold 100,000 Factory overhead 27,000 General and administrative expenses 41,000 Totals $ 304,500 $ 304, 500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: $4,600 direct materials to Job 402 Materials requisition 11: $ 7,200 direct materials to Job 404 Materials requisition 12: $ 1,500 indirect materials Labor time ticket 52: $ 5,000 direct labor to Job 402 Labor time ticket 53: $ 15,000 direct labor to Job 404 Labo 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. Direct materials. Direct labor. Overhead applied. Indirect materials. Indirect labor. Required: 1. Use the document information above to prepare journal entries for the above costs.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 29Q: If the factory overhead control account has a credit balance of 2,000 at the end of the first month...
Related questions
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. Debit Credit Cash $ 68,000 Accounts receivable
37,000 Raw materials inventory 23,500 Work in process inventory 0 Finished goods inventory
6,000 Prepaid rent 2,000 Accounts payable $ 9,000 Notes payable 12,000 Common stock
20,000 Retained earnings (prior year) 94,000 Sales 169,500 Cost of goods sold 100,000
Factory overhead 27,000 General and administrative expenses 41,000 Totals $ 304,500 $
304,500 These six documents must be processed to bring the accounting records up to date.
Materials requisition 10: $ 4,600 direct materials to Job 402 Materials requisition 11: $ 7,200
direct materials to Job 404 Materials requisition 12: $ 1,500 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. Direct materials. Direct
labor. Overhead applied. Indirect materials. Indirect labor. Required: 1. Use the document
information above to prepare journal entries for the above costs.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning