Comprehensive Problem Major League Bat Company (Algo) REQUIRED 3 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, $31,000 Work in Process Inventory, $7,985 ($3,260 of direct materials and $4,725 of conversion) Finished Goods Inventory, $120,000 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 Purchased raw materials for $175,000 cash Used raw materials as follows direct materials, $45,040 and indirect materials, $16,000 Recorded factory wages payable costs as follows direct labor, $217,250 and indirect labor, $31,000 Incurred other actual factory overhead costs of $61,625 paid in cash 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 9,000 units Started 12,000 units Units transferred out 15,000 units Ending WIP inventory 6,000 units Beginning WIP Inventory Direct materialsPercent complete 100 ConversionPercent complete 80 Ending WIP Inventory Direct materialsPercent complete 100 ConversionPercent complete 40 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 $295,700 for $685,000 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 PLEASE VIEW THE TRANSACTION LIST (CHOICES FOR BOXES) BELOW AND THEN HELP WITH THE 3 SEPERATE JOURNAL WORKSHEETS IN THE FOLLOWING PICTURES View transaction list 1 Record the transfer of goods to Finished Goods Inventory 2 Record sale of finished goods for cash 3 Record the cost of goods sold TTTTTTI Note journal entry has been entered Journal entry worksheet Record the transfer of goods to Finished Goods Inventory Note Enter debits before credits Transaction General journal Debit Credit f Record entry Clear entry View general journal Journal entry worksheet Record sale of finished goods for cash Note Enter debits before credits Transaction General journal Debit Credit 91 Record entry Clear entry View general journal Journal entry worksheet Record the cost of goods sold Note Enter debits before credits Transaction General journal Debit Credit 92 Record entry Clear entry View general journal

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Comprehensive Problem Major League Bat Company (Algo) REQUIRED 3 Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the

Comprehensive Problem Major League Bat Company (Algo) REQUIRED 3

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, $31,000; Work in Process Inventory, $7,985 ($3,260 of direct materials and $4,725 of conversion); Finished Goods Inventory, $120,000; 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.

Purchased raw materials for $175,000 cash.
Used raw materials as follows: direct materials, $45,040; and indirect materials, $16,000.
Recorded factory wages payable costs as follows: direct labor, $217,250; and indirect labor, $31,000.
Incurred other actual factory overhead costs of $61,625 paid in cash.
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	9,000	units
Started	12,000	units
Units transferred out	15,000	units
Ending WIP inventory	6,000	units

Beginning WIP Inventory
Direct materialsPercent complete	100%
ConversionPercent complete	80%

Ending WIP Inventory
Direct materialsPercent complete	100%
ConversionPercent complete	40%

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 $295,700 for $685,000 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.

PLEASE VIEW THE TRANSACTION LIST (CHOICES FOR BOXES) BELOW AND THEN HELP WITH THE 3 SEPERATE JOURNAL WORKSHEETS IN THE FOLLOWING PICTURES

View transaction list 1 Record the transfer of goods to Finished Goods Inventory. 2 Record sale of finished goods for cash. 3 Record the cost of goods sold. TTTTTTI Note : = journal entry has been entered Journal entry worksheet Record the transfer of goods to Finished Goods Inventory. Note: Enter debits before credits. Transaction General journal Debit Credit f. Record entry Clear entry View general journal Journal entry worksheet Record sale of finished goods for cash. Note: Enter debits before credits. Transaction General journal Debit Credit 91. Record entry Clear entry View general journal Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Transaction General journal Debit Credit 92 Record entry Clear entry View general journal