Check 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, $32,000; Work in Process Inventory, $8,200 ($3,310 of direct materials and $4,890 of conversion); Finished Goods Inventory, $130,000; 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 $180,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials, $50,690; and indirect materials, $16,500. c. Recorded factory wages payable costs as follows: direct labor, $218,500; and indirect labor, $31,500. d. Paid factory payroll cost of $250,000 with cash (ignore taxes). e. Incurred additional factory overhead costs of $93,000 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 13,000 units 7,000 units Units Beginning inventory Started Ending inventory Beginning inventory Materials-Percent complete Conversion-Percent complete Ending inventory Materials-Percent complete Conversion-Percent complete 100% 70% 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 $298,200 for $690,000 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 Post entries from parts 1 and 3 to the following general ledger accounts. Acct. No. 132 Acct. No. 133 Raw Materials Inventory Transactions Debit June 30 Credit Balance 32,000 Work in Process Inventory Transactions Debit Credit June 30 Balance 8,200 Acct. No. 135 Finished Goods Inventory Transactions Debit Credit June 30 Factory Wages Payable Transactions Debit Acct. No. 212 Balance Balance Credit 130,000 Acct. No. 413 Sales Debit Cost of Goods Sold Transactions Debit Acct. No. 502 Balance Transactions Credit Balance Credit Acct. No. 540 Factory Overhead Transactions Debit Credit Balance
