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. 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, $34,000; Work in Process Inventory, $10,220 ($3,410 of direct materials and $6,810 of conversion); Finished Goods Inventory, $150,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll Payable, $0; and Factory Overhead, $0. 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.) 10,500 units 12,000 units 6,000 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% 40% Total costs to account for: Cost of beginning work in process Costs incurred this period $ Total costs to account for: $ 6,810 331,500 338,310 396,810 (58,500) Total costs accounted for Difference due to rounding cost/unit $ $ 4. Post entries from parts 1 and 3 to the following general ledger accounts. Acct. No. 132 Raw Materials Inventory Debit Acct. No. 133 Balance Date Credit Work in Process Inventory Date Debit Credit June 30 Balance June 30 10,220 Acct. No. 135 Acct. No. 212 Finished Goods Inventory Debit Credit Factory Wages Payable Debit Date Balance Date Credit Balance June 30 150,000 Sales Cost of Goods Sold Acct. No. 502 Acct. No. 413 Balance Date Debit Credit Date Debit Credit Balance Factory Overhead Acct. No. 540 Date Debit Credit Balance 5. Compute the amount of gross profit from the sales in July. (Add any underapplied overhead to, or deduct any overapplied overhead from, the cost of goods sold.) Gross profit 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. 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, $34,000; Work in Process Inventory, $10,220 ($3,410 of direct materials and $6,810 of conversion); Finished Goods Inventory, $150,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll Payable, $0; and Factory Overhead, $0. 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.) 10,500 units 12,000 units 6,000 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% 40% Total costs to account for: Cost of beginning work in process Costs incurred this period $ Total costs to account for: $ 6,810 331,500 338,310 396,810 (58,500) Total costs accounted for Difference due to rounding cost/unit $ $ 4. Post entries from parts 1 and 3 to the following general ledger accounts. Acct. No. 132 Raw Materials Inventory Debit Acct. No. 133 Balance Date Credit Work in Process Inventory Date Debit Credit June 30 Balance June 30 10,220 Acct. No. 135 Acct. No. 212 Finished Goods Inventory Debit Credit Factory Wages Payable Debit Date Balance Date Credit Balance June 30 150,000 Sales Cost of Goods Sold Acct. No. 502 Acct. No. 413 Balance Date Debit Credit Date Debit Credit Balance Factory Overhead Acct. No. 540 Date Debit Credit Balance 5. Compute the amount of gross profit from the sales in July. (Add any underapplied overhead to, or deduct any overapplied overhead from, the cost of goods sold.) Gross profit