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Bergo Bay's accounting system generated the following account balances on December 31. The companys 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 $ 69,000 Accounts receivable 38,000 Raw materials inventory 24,000 Work in process inventory 0 Finished goods inventory 6,000 Prepaid rent 2,000 Accounts payable $ 8,600 Notes payable 11,600 Common stock 20,000 Retained earnings (prior year) 89,000 Sales 189,800 Cost of goods sold 108,000 Factory overhead 25,000 General and administrative expenses 47,000 Totals $ 319,000 $ 319,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: $ 4,100 direct materials to Job 402 Materials requisition 11: $ 7,200 direct materials to Job 404 Materials requisition 12: $ 2,400 indirect materials Labor time ticket 52: $ 6,000 direct labor to Job 402 Labor time ticket 53: $ 14,000 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.

Req 4 Income Statement Prepare an income statement. 5. Assume that the $2,400 on materials requisition 12 should have been direct materials charged to Job 404 . Does this in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Assume that the $2,400 on materials requisition 12 should have been direct materials charged to Job 404 . Does this error result in overstatement or understatement of total assets on the balance sheet at December 31 ? Does this error result in overstatement or understatement of total assets \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ As at December 31 } \\ \hline & & \\ \hline & & \\ \hline Inventories & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline & & \\ \hline Liabilities & & \\ \hline & & \\ \hline Total equity & & \\ \hline Total liabilities & & \\ \hline \end{tabular} Req 4 Income Statement Prepare an income statement. 5. Assume that the $2,400 on materials requisition 12 should have been direct materials charged to Job 404 . Does this in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Assume that the $2,400 on materials requisition 12 should have been direct materials charged to Job 404 . Does this error result in overstatement or understatement of total assets on the balance sheet at December 31 ? Does this error result in overstatement or understatement of total assets \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ As at December 31 } \\ \hline & & \\ \hline & & \\ \hline Inventories & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline & & \\ \hline Liabilities & & \\ \hline & & \\ \hline Total equity & & \\ \hline Total liabilities & & \\ \hline \end{tabular}

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