Check my work 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, $28,000; Work in Process Inventory, $7,910 ($3,110 of direct materials and $4,800 of conversion); Finished Goods Inventory, $200,000; Sales, $0; Cost of Goods Sold, $0; Factory Wages Payable, $0; and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $160,000 cash (the company uses a perpetual inventory system) b. Used raw materials as follows: direct materials, $94,240; and indirect materials, $14,500. c. Recorded factory wages payable costs as follows: direct labor, $213,500; and indirect labor, $29,500. d. Paid factory payroll cost of $243,000 with cash (ignore taxes). e. Incurred additional factory overhead costs of $89,000 paid in cash. f. Applied factory overhead to production at 50% of direct labor costs. 2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted average method is used. (Round "Cost per EUP" to 2 decimal places.) 9,500 units 20,000 units 14, 000 units Units Beginning inventory Started Ending inventory Beginning inventory Materials-Percent complete Conversion-Percent complete Ending inventory Materials-Percent complete Conversion-Percent complete 100% 80% 100% 30% 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: g. Total costs transferred to finished goods for July. h. Sale of finished goods costing $288,200 for $670,000 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. (Hint Add any underapplied overhead to, or deduct any overapplied overhead from, the cost of goods sold.) Check my work LUIIVELSIUI 1 CLLCLLLLCLC JUN 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: g. Total costs transferred to finished goods for July. h. Sale of finished goods costing $288,200 for $670,000 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. (Hint Add any underapplied overhead to, or deduct any overapplied overhead from, the cost of goods sold.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted average method is used. (Round "Cost per EUP" to 2 decimal places.) $ Total costs to account for: Cost of beginning work in process Costs incurred this period Total costs to account for: 7,910 200,990 208,900 $ $ 0 9,500 20,000 29,500 Unit reconciliation: Units to account for: Beginning work in process inventory - units Units started this period Total units to account for Total units accounted for: Units completed and transferred out Ending work in process - units Total units accounted for Equivalent units of production (EUP)- weighted average method 15,500 14,000 29,500 Units % Materials EUP- Materials % Labor EUP Conversion Check my % Labor 100% 30% EUP Conversion 15,500 4,200 19,700 Conversion $ 4,800 $ Units completed and transferred out 15,500 Ending work in process - units 14,000 Total units accounted for 29,500 Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials Units completed and transferred out 15,500 100% 15,500 Ending work in process - units 14,000 100% 14,000 Total units 29,500 29,500 Cost per equivalent unit of production Materials Cost of beginning work in process 3,110 Costs incurred this period 94,240 Total costs Costs $ 97,350 - Equivalent units of production EUP 3 Cost per equivalent unit of production (rounded to 2 decimals) $ 32,450.00 Total costs accounted for: Cost of units transferred out: EUP Cost per EUP Total cost Direct materials 15,500 Conversion 15,500 Total costs transferred out Costs of ending goods in process EUP Cost per EUP Total cost Direct materials 14,000 $ 0.00 $ 0 Conversion 4,200 $ 0.00 0 Total cost of ending goods in process Total costs accounted for Costs EUP 0 0 0 Required 1 Required 2 Required 3 Required 4 Required 5 Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: g. Total costs transferred to finished goods for July. h. Sale of finished goods costing $288,200 for $670,000 in cash. Show less View transaction list Journal entry worksheet Record the transfer of goods to Finished Goods Inventory. Note: Enter debits before credits. Transaction Debit Credit 9 General journal Finished goods inventory Work in process inventory Record entry Clear entry View general journal Return to question Raw Materials Inventory Credit Transactions June 30 (a) Debit 28.000 X Acct. No. 133 Balance 7.910 Acct. No. 132 Balance 28,000 188,000 93,760 79.260 160,000 Work in Process Inventory Transactions Debit Credit June 30 7,910X (b) 94,240 (c) 213,500 (1) 7,910X (9) 102,150 (b) 94,240 x 14,500 X 315.650 323,560 (b) Finished Goods Inventory Transactions Debit Credit June 30 Acct. No. 135 Balance 200,000 Factory Wages Payable Transactions Debit Acct. No. 212 Balance Credit Sales Acct. No. 413 Balance Cost of Goods Sold Transactions Debit Acct. No. 502 Balance Transactions Debit Credit Credit Factory Overhead Acct. No. 540 Balance Transactions Debit Credit 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: g. Total costs transferred to finished goods for July. h. Sale of finished goods costing $288,200 for $670,000 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. (Hint Add any underapplied overhead to, or deduct any overapplied overhead from the cost of goods sold.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the amount of gross profit from the sales in July. (Hint: Add any underapplied overhead to, or deduct any overapplied overhead from, the cost of goods sold.) Gross profit