Ch 16 Homework i 1 Saved 15 points eBook References Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 balances: Raw Materials Inventory, $22,000; Work in Process Inventory, $9,690 ($2,810 of direct materials and $6,880 of conversion); Finished Goods Inventory, $140,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll Payable, $0; and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $130,000 cash. b. Used raw materials as follows: direct materials, $52,540; and indirect materials, $11,500. c. Recorded factory wages payable costs as follows: direct labor, $206,000; and indirect labor, $26,500. d. Incurred other actual factory overhead costs of $65,000 paid in cash. e. Applied factory overhead to production at 50% of direct labor costs. 2. Information about the July work in process (WIP) inventory follows. Use this information with that from part 1 to prepare a production cost report, assuming the weighted average method is used. Units Beginning WIP inventory Started Units transferred out Ending WIP inventory Beginning WIP Inventory Direct materials-Percent complete 6,500 units 14,000 units 12,500 units 8,000 units 100% 80% Conversion-Percent complete Ending WIP Inventory Direct materials-Percent complete 100% Conversion-Percent complete 30% 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: f. Total costs transferred to finished goods for July. g. Sale of finished goods costing $273,200 for $640,000 in cash. 4. Post entries from parts 1 and 3 to the following general ledger accounts. 5. Compute the amount of gross profit from the sales in July. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $130,000 cash. b. Used raw materials as follows: direct materials, $52,540; and indirect materials, $11,500. c. Recorded factory wages payable costs as follows: direct labor, $206,000; and indirect labor, $26,500. d. Incurred other actual factory overhead costs of $65,000 paid in cash. e. Applied factory overhead to production at 50% of direct labor costs. Show less Required 1 Required 2 Required 3 Required 4 Required 5 Information about the July work in process (WIP) inventory follows. Use this information with that from part 1 to prepare a production cost report, assuming the weighted average method is used. (Round "Cost per EUP" to 2 decimal places.) Unit reconciliation: Units to account for: Total units to account for Units accounted for: Total units accounted for Equivalent units of production (EUP) Equivalent Units of Production Cost per equivalent unit of production Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Cost Assignment Completed and transferred out Direct materials Conversion Ending work in process Direct materials Conversion Total costs accounted for Direct Materials Conversion Units % Complete EUP % Complete EUP Direct Materials Costs EUP EUP Cost per EUP Total cost Conversion Costs EUP 0 0 EUP Cost per EUP S Total cost 0.00 $ 0 S 0.00 0 < Required 1 Required 3 > Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: f. Total costs transferred to finished goods for July. g. Sale of finished goods costing $273,200 for $640,000 in cash. View transaction list Journal entry worksheet 1 2 3 Record the transfer of goods to Finished Goods Inventory. Note: Enter debits before credits. Transaction f. General journal Debit Credit Record entry Clear entry View general journal Show less Post entries from parts 1 and 3 to the following general ledger accounts. Raw Materials Inventory Date June 30 Date June 30 Debit Finished Goods Inventory Debit Account Number 132 Credit Balance Date Work in Process Inventory Debit Credit 22,000 June 30 Account Number 133 Balance 9,690 Account Number 135 Factory Wages Payable Account Number 212 Credit Balance Date Debit Credit Balance 140,000 Sales Account Number 413 Date Debit Credit Balance Date Cost of Goods Sold Debit Account Number 502 Credit Balance Date Factory Overhead Debit Credit Account Number 540 Balance < Required 3 Required 5 > Required 1 Required 2 Required 3 Required 4 Required 5 Compute the amount of gross profit from the sales in July. Gross profit < Required 4 Required 5 >