Cost Of Goods Manufactured and Sold. For July, Bridgewell Company had cost of goods manufactured equal to $50,000; direct materials used, $16,000; cost of goods sold, $60,000; direct labor, $24,000; purchases of mate¬ rials, $25,000; cost of goods available for sale, $70,000; and total factory labor, $29,000. Work in process was $15,000 on July 1 and $25,000 on July 31. The company uses a single materials account for direct and indirect materials.

Required: Prepare the following: LO8

(1) A cost of goods sold statement. For brevity, show single line items for factory overhead and direct materials used.

(2) Summary general journal entries to record:

(a) purchase of materials on account

(b) use of materials, including indirect materials of $2,000

(c) accrual of the factory payroll, including indirect labor of $5,000 (use a payroll clearing account)

(d) distribution of factory labor cost

(e) transfer of completed work to finished goods

(f) sales on account, at a markup equal to 75% of production cost