Dream Toys Company manufactures video game consoles and accounts for product costs using process costing. The following information is available regarding its June inventories.

The following additional information describes the company’s production activities for June.

Required 1. Compute the eost of

(a) products transferred from production to finished goods, and

(b) goods sold.
2. Prepare journal entries dated June 30 to record the following production activities during June;

(a) raw materials purchases,

(b) direct materials usage,

(c) indirect materials usage,

(d) payroll costs,

(e) direct labor costs,

(f) indirect labor costs, (g) other overhead costs, (h) overhead applied, (i) goods trans- feired from production to finished goods, and (j) sale of finished goods.

Transcribed Image Text:

Beginning Ending Inventory Inventory Raw materials inventory Goods in process inventory Finished goods inventory... $ 72,000 $110,000 156,000 250,000 160,000 198,000