Pennsylvania Company produces a product that passes through a single production process. Then com¬ pleted products are transferred to finished goods in its warehouse. Information related to its manufacturing activities for July follows

Required 1. Prepare a physical flow reconciliation for July as illustrated in Exhibit 20.12.
2. Compute the equivalent units of production in July for direct materials, direct labor, and factory overhead.
3. Compute the costs per equivalent units of production in July for direct materials, direct labor, and factory overhead.
4. Prepare a report of costs accounted for and a report of costs to account for.
5. Prepare summary journal entries to record the transactions and events of July for

(a) raw materials purchases,

(b) direct materials usage,

(c) indirect materials usage,

(d) factory payroll costs,

(e) direct labor usage,

(f) indirect labor usage, (g) other overhead costs (credit Other Accounts), (h) application of overhead to production, (i) transfer of finished goods from production, and (j) the cost of goods sold.

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Raw Materials Production Department Beginning inventory Raw materials purchased on credit $100,000 211,400 Beginning goods in process inventory (units)....... Percentage completed-Materials. 5,000 100% Direct materials used.... (190,000) Indirect materials used (51,400) Ending inventory Factory Payroll Direct labor incurred $ 70,000 Direct materials used $ 55,500 50,625 $106,125 Percentage completed-Labor and overhead .... Beginning goods in process inventory (costs) Direct labor incurred Overhead applied (200% of direct labor). Total costs of beginning goods in process.... Units started this period.... 60% $ 20,000 9,600 19,200 $ 48,800 Indirect labor incurred Total payroll (paid in cash) Factory Overhead Indirect materials used Indirect labor used Other overhead costs. Total factory overhead incurred 20,000 Units completed this period. 17,000 $ 51,400 Ending goods in process inventory (units). 8,000 50,625 71,725 Percentage completed-Materials .... Percentage completed-Labor and overhead .... 100% 20% $173,750 Finished Goods Inventory Factory Overhead Applied Overhead applied (200% of direct labor)..... $111,000 Beginning finished goods inventory... Cost transferred in from production Cost of goods sold $ 96,400 Ending finished goods inventory... 321,300 (345,050) $ 72,650