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[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 Debit $ 76,000 Credit 45,000 27,500 Work in process inventory 0 Finished goods inventory 15,000 Prepaid rent 5,000 Accounts payable $ 9,000 Notes payable 12,000 Common stock 50,000 Retained earnings (prior year) 78,000 Sales 213,500 Cost of goods sold 116,000 Factory overhead 27,000 General and administrative 51,000 expenses $ Totals 362,500 362,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials $ 4,500 direct materials to Job 402 $ 7,100 requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: direct materials to Job 404 $ 2,200 indirect materials $ 7,000 direct labor to Job 402 $ direct labor to Job 13,000 404 $ 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. Problem 19-3A (Algo) Part 2 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 2A Req In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. Factory Overhead Actual overhead (given)

[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 Debit $ 76,000 Credit 45,000 27,500 Work in process inventory 0 Finished goods inventory 15,000 Prepaid rent 5,000 Accounts payable $ 9,000 Notes payable 12,000 Common stock 50,000 Retained earnings (prior year) 78,000 Sales 213,500 Cost of goods sold 116,000 Factory overhead 27,000 General and administrative 51,000 expenses $ Totals 362,500 362,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials $ 4,500 direct materials to Job 402 $ 7,100 requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: direct materials to Job 404 $ 2,200 indirect materials $ 7,000 direct labor to Job 402 $ direct labor to Job 13,000 404 $ 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. Problem 19-3A (Algo) Part 2 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 2A Req In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. Factory Overhead Actual overhead (given)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[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 Debit $ 76,000 Credit 45,000 27,500 Work in process inventory 0 Finished goods inventory 15,000 Prepaid rent 5,000 Accounts payable $ 9,000 Notes payable 12,000 Common stock 50,000 Retained earnings (prior year) 78,000 Sales 213,500 Cost of goods sold 116,000 Factory overhead 27,000 General and administrative 51,000 expenses $ Totals 362,500 362,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials $ 4,500 direct materials to Job 402 $ 7,100 requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: direct materials to Job 404 $ 2,200 indirect materials $ 7,000 direct labor to Job 402 $ direct labor to Job 13,000 404 $ 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. Problem 19-3A (Algo) Part 2 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 2A Req In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. Factory Overhead Actual overhead (given) <Req 2A Req 2B >
Transcribed Image Text:[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 Debit $ 76,000 Credit 45,000 27,500 Work in process inventory 0 Finished goods inventory 15,000 Prepaid rent 5,000 Accounts payable $ 9,000 Notes payable 12,000 Common stock 50,000 Retained earnings (prior year) 78,000 Sales 213,500 Cost of goods sold 116,000 Factory overhead 27,000 General and administrative 51,000 expenses $ Totals 362,500 362,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials $ 4,500 direct materials to Job 402 $ 7,100 requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: direct materials to Job 404 $ 2,200 indirect materials $ 7,000 direct labor to Job 402 $ direct labor to Job 13,000 404 $ 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. Problem 19-3A (Algo) Part 2 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 2A Req In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. Factory Overhead Actual overhead (given) <Req 2A Req 2B >
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