Problem - Thai Bay's computer system generated the following trial balance on December 31, 2011. 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.
|
Debit
|
Credit
|
|
Cash
|
$52,000
|
|
|
Accounts receivable
|
46,000
|
|
|
Raw materials inventory
|
28,000
|
|
|
Goods in process inventory
|
0
|
|
|
Finished goods inventory
|
6,000
|
|
|
Prepaid rent
|
2,000
|
|
|
Accounts payable
|
|
$9,600
|
|
Notes payable
|
|
12,600
|
|
Common stock
|
|
20,000
|
|
Retained earnings
|
|
79,000
|
|
Sales
|
|
224,800
|
|
Cost of goods sold
|
116,000
|
|
|
Factory payroll
|
18,000
|
|
|
Factory overhead
|
25,000
|
|
|
Operating expenses
|
53,000
|
|
|
Totals
|
$346,000
|
$346,000
|
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:
|
$4,100 direct materials to Job 402
|
|
Materials requisition 21-3011:
|
$8,000 direct materials to Job 404
|
|
Materials requisition 21-3012:
|
$2,200 indirect materials
|
|
Labor time ticket 6052:
|
$2,000 direct labor to Job 402
|
|
Labor time ticket 6053:
|
$14,000 direct labor to Job 404
|
|
Labor time ticket 6054:
|
$2,000 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.
Required - Prepare a revised trial balance.