Bergamo Bay's computer system generated the following trialbalance on December 31, 2017. The company’s manager knows somethingis wrong with the trial balance because it does not show anybalance for Work in Process Inventory but does show a balance forthe Factory Overhead account. In addition, the accrued factorypayroll (Factory Payroll Payable) has not been recorded.

		Debit			Credit
Cash	$	59,000
Accounts receivable		39,000
Raw materials inventory		24,500
Work in process inventory		0
Finished goods inventory		15,000
Prepaid rent		5,000
Accounts payable				$	8,600
Notes payable					11,600
Common stock					50,000
Retained earnings					94,000
Sales					161,300
Cost of goods sold		110,000
Factory overhead		25,000
Operating expenses		48,000
Totals	$	325,500		$	325,500

After examining various files, the manager identifies the followingsix source documents that need to be processed to bring theaccounting records up to date.

Materials requisition21-3010:		$	4,800	direct materials to Job 402
Materials requisition21-3011:		$	7,700	direct materials to Job 404
Materials requisition21-3012:		$	2,500	indirect materials
Labor time ticket 6052:		$	8,000	direct labor to Job 402
Labor time ticket 6053:		$	5,000	direct labor to Job 404
Labor time ticket 6054:		$	1,000	indirect labor

Jobs 402 and 404 are the only units in process at year-end. Thepredetermined overhead rate is 100% of direct labor cost.

1) Determine the revised balance of the Factory Overhead accountafter making the entries in part 1 using T-accounts. Determinewhether there is any under- or overapplied overhead for theyear.
2)Prepare the adjusting entry to allocate any over- or underappliedoverhead to Cost of Goods Sold, assuming the amount is notmaterial.

3)Prepare a revised trial balance.
4)Prepare an income statement for 2017 and a balance sheet as ofDecember 31, 2017.