Refer to the information in PB3-3 for Firelight Company Required:

Prepare Firelight’s journal entries to record each of the following transactions.

(a) Added direct materials to production during July.

(b) Applied conversion cost during July.

(c) Transferred costs of completed units to Finished Goods Inventory.

(d) Sold units costing \($450,000\) for \($800,000.\)

(e) Recorded \($367,000\) of actual conversion cost.

(f) Disposed of ending the balance in the Conversion Cost account.

Data from PB3-3

Firelight Company makes camping tents in a single production department. All direct materials are added at the beginning of the manufacturing process. Information for the month of July follows:

Transcribed Image Text:

Beginning work in process (30% complete) Direct materials Conversion cost Total cost of beginning work in process Number of units started Number of units completed and transferred to finished goods Ending work in process (35% complete) Direct materials cost incurred Conversion cost applied Total cost added 23,100 units $121,000 184,000 $305,000 62,500 77,400 $281,700 386,200 $667,900