Comprehensive Problem Major League Bat Company 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 eBook Required: You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 balances: Goods Inventory. $140000, Sales, S0 Cost of Goods Sold, $0. Factory Payroll Payable, $0, and Factory Overhead, $0 1 Prepare jounal entries to record the following July transactions and events. Raw Materials Inventory, $22000, Work in Process Inventory, $9.690($2 810 of direct materials and $6,880 of conversion), Finished e a. Purchased raw materials for $130,000 cash (the company uses a perpetual inventory system) b. Used raw materials as follows: direct materials, $52540, and indirect materials, $11,500 c. Recorded factory payroll payable costs as follows: direct labor, $206,000, and indirect labor, $26,500 d. Paid factory payroll cost of $232,500 with cash (ignore taxes) e. Incurred additional factory overhead costs of $83,000 paid in cash. Allocated factory overhead to production at 50% of direct labor costs. View transaction ist View journal entry worlsheet General Journal Debit Credit Raw matenals inventory 130,000 Cash 130,000 View transaction Ist View jounal entry worksheet Debit Credit General Journal 100 Raw matenals inventory 130,000 Cash 130,000 52,540 11,500 b Work in process imventory Factory overhead eSook Raw matenals inventory 64,040 Work in process inventory Factory overhead 206,000 26,500 Factory wages payable 232,500 Faclony wages payable 232,500 Cash 232 500 Factory overhead 83,000 Cash 83,000 t Work in process inventory Factory overhead 103,000 103,000 2 Information about the July inventories follows. Use this information with that from part 1to prepare a process cost summary assuming the weighted-average method is used. (Round "Cost per EUP to 2 decimal places.) 100 Onits Beginning inventory Started Ending inventory 6, 500 units 14,000 units 8, 000 units eBook Beginning inventory Haterials-Percent conplete Conversion-Percent complete 90% Ending inventory Materials-Pezcent complete Conversion-Percent complete 1008 30t References to of beginning work in process of goods manufactured S 6,500 14,000 S 20,500 Total costs to account for Units to account for: Units completed and transferred out Ending work in process-unt:s Total units to account for Total units accounted for: al costs to account for: Cost of beginning work in process ost of goods manufactured S 6,500 14,000 S 20,500 Total costs to account for 100 points Units to account for eBook Units completed and transferred out Ending work in process-units Total units to account for 12,500 8,000 20,500 Phint Total units accounted for: Ending work in process-units Total units accounted for its of production (EUP method Units % Materials EUP. Materials: % Labor EUP Total unts unit Materials Total costs Equvalent units of production Costs Costs Ending work in process Total units accounted for Equivalent units of production (EUP)- weighted average method EUP nver Units % Materials EUP. Materials 1 % Labor | eBook Total unts Print Cost per equivalent unit of production Materials Conversion eferences Total costs -Equivalent units of production Cost per equvalent unit of production (rounded to 2 decimals) Total costs accounted for Cost of units transferred out Costs Costs EUP EUP EUP Cost per EUP Total cost Direct matenals Total costs transferred out Costs of ending goods in process EUP Cost per EUP Total cost S 000S $ 000 Direct matenals Conversion Total cost of ending goods in process Total costs accounted for 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 $273200 for $640,000 in cash. oints eBook View transaction list Print Journal entry worksheet References Record the transfer of goods to Finished Goods Inventory. Note: Enter debits before credts. Transaction General jounal Debit Credit Record entry Clear entry View general joumal 4. Post enties from parts 1 and 3 to the following general ledger accounts Acct. No. 1 Balance Work in Process Inventory Debit Acct. No. 1 Debit Credit Credit 100 June 30 une 30 9,690 Acct. No. 135 Factory Wages Payable Debit Acct No. 212 Date ReferencesJune 30 140 000 io, Cost of Goods Sold Credit Date Debit No. 5 Compute the amount of gross proft fom the sales in July (Add any underaplied overhead to, or deduct any overapplied overhead from, the cost of goods sold) Prey 1 of 1Nexdt