Question

Bergamo Bay's computer system generated the following trial balance on December 31, 2019. 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 Wages Payable) has not been recorded.

		Debit			Credit
Cash	$	77,000
Accounts receivable		46,000
Raw materials inventory		28,000
Work in process inventory		0
Finished goods inventory		9,000
Prepaid rent		3,000
Accounts payable				$	9,700
Notes payable					12,700
Common stock					30,000
Retained earnings					82,000
Sales					204,600
Cost of goods sold		105,000
Factory overhead		25,000
Operating expenses		46,000
Totals	$	339,000		$	339,000

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:		$	4,000	direct materials to Job 402
Materials requisition 21-3011:		$	7,200	direct materials to Job 404
Materials requisition 21-3012:		$	2,500	indirect materials
Labor time ticket 6052:		$	4,000	direct labor to Job 402
Labor time ticket 6053:		$	16,000	direct labor to Job 404
Labor time ticket 6054:		$	5,000	indirect labor

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

3. Prepare a revised trial balance.

Answer 1