Assignment
Bergamo Bays computer system generated the following trial balance on December 31. 2015. The company's manager knows something Is wrong with the trial balance because It does not show any balance for Work In Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Payroll Payable) has not been recorded.
|
|
Debit
|
Credit
|
|
Cash
|
170.000
|
|
|
Accounts receivable
|
75.000
|
|
|
Raw materials Inventory
|
80.000
|
|
|
Work In process Inventory
|
0
|
|
|
Finished goods Inventory
|
15.000
|
|
|
Prepaid rent
|
3.000
|
|
|
Accounts payable
|
|
$ 17.000
|
|
Notes payable
|
|
25.000
|
|
Common stock
|
|
50.000
|
|
Retained earnings
|
|
271.000
|
|
Sales
|
|
373.000
|
|
Cost of goods sold
|
218.000
|
|
|
Factory overhead
|
115.000
|
|
|
Operating expenses
|
60.000
|
|
|
Totals
|
$ 736.000
|
$ 736.000
|
After examining various files. the manager Identifies the following six source documents that need to be processed to bring the accounting records up to date.
|
Materials requisition 21-3010: Materials requisition 21-3011: Materials requisition 21-3012: Labor time ticket 6052:
Labor time ticket 6053:
Labor time ticket 6054:
|
$10.200 direct materials to Job 402
$ 18.600 direct materials to Job 404
$ 5.600 indirect materials
$36.000 direct labor to Job 402
$23.800 direct labor to Job 404
$ 8.200 Indirect labor
|
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate Is 200% of direct labor cost.