Farina Bay’s computer system generated the following trial balance on December 3
ID: 2498313 • Letter: F
Question
Farina Bay’s computer system generated the following trial balance on December 31, 2013. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.
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.
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 150% of direct labor cost.
rev: 11_20_2013_QC_41040
References
Section BreakProblem 19-2A Source documents, journal entries, overhead, and financial reports LO P1, P2, P3, P4
31.
value:
5.00 points
Required information
Problem 19-2A Part 1
32.
value:
4.00 points
Required information
Problem 19-2A Part 2
Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year.
Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.
33.
value:
4.00 points
Required information
Problem 19-2A Part 3
34.
value:
4.00 points
Required information
Problem 19-2A Part 4
Prepare an income statement for year 2013.
Prepare a balance sheet as of December 31, 2013.
Farina Bay’s computer system generated the following trial balance on December 31, 2013. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.
Explanation / Answer
journal entries:
Factory overhead
Adjusting entry
Adjsting trial balance
income statement
Accounts Debit Credit Goods in process inventory $11,900 To Raw materials inventory $11,900 Goods in process inventory $15,000 To Factory payroll $15,000 Goods in process inventory $22,500 To Factory ove rhead $22,500 Factory overhead $2,300 To Raw materials inventory $2,300 Factory overhead $3,000 To Factory payroll $3,000Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.