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 lobor. 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 Row Motenals Inventory, 522000. Work in Process inventory, 57885($3.060 of direct materials and $4,825 of conversion Finished Goods inventory $190,000 Shies $0. Cost of Goods Sold, $o Factory Wages Payable $0, and Factory Overhead $0. 1. Prepara Journal entries to record the following July transactions and events a. Purchased raw materials for $155.000 cash (the company uses a perpetual inventory system) b. sed raw materials as follows direct materials. $86,540, and indirect materials. $14,000. s. Recorded factory wages payable costs as follows: direct obor $212 250, ond Indirect lobor $29.000 d. Paid factory payroll cost of $241 250 with cash ignore taxes) e. Incurred additional factory overhead costs of $88,000 paid in cash Applied foctory overneed 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.) 9,000 unit 19.000 units 13.00 units tinits leginning inventory Start Ending Inventory Beginning inventory Materials-Percent couplete Conversion-Percent complete Ending inventory Materials-Percent complete Conversion-Percent complete 100% 751 1005 401 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 $285 700 for $665,000 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 files in July (Font Add any underopplied 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 Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $ 155,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials, $86,540; and indirect materials, $14,000. c. Recorded factory wages payable costs as follows: direct labor, $212,250; and indirect labor, $29,000. d. Paid factory payroll cost of $241,250 with cash (ignore taxes). e. Incurred additional factory overhead costs of $88,000 pald in cash. f. Applied factory overhead to production at 50% of direct labor costs. View transaction list Journal entry worksheet Record the purchase of raw materials for cash. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal Total costs to account for: Total costs to account for $ $ 0 Unit reconciliation: Units to account for: Total units to account for Total units accounted for Total units accounted for Equivalent units of production (EUP)- weighted average method Units Materials EUP-Materials Labor EUP- Conversion Total units Cost per equivalent unit of production Materials Conversion Costs EUP Coats EUP Cost per EUP Total cost Total costs - Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total costs accounted for Cost of units transferred out EUP Direct materials Conversion Total costs transferred out Costs of ending goods in process EUP Dired materials Conversion Total cost of ending goods in process Total costs accounted for Cost per EUP Total cost $ 0005 $ 0.00 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 $285,700 for $665,000 in cash. Show less View transaction list Journal entry worksheet 1 2 3 Record the transfer of goods to Finished Goods Inventory. Note: Enter debits before credits Transaction General journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Required 3 Required 4 Required 5 Post entries from parts 1 and 3 to the following general ledger accounts. Raw Materials Inventory Transactions Debit June 30 Credit Acct. No. 132 Balance 27.000 Work in Process Inventory Transactions Debit Credit June 30 Acct. No. 133 Balance 7,885 Acct. No. 212 Finished Goods Inventory Transactions Debit Credit June 30 Acct. No. 135 Balance 190.000 Factory Wages Payable Transactions Debit Credit Balance Sales Acct. No. 502 Acct. No. 413 Balance Cost of Goods Sold Transactions Debit Transactions Debit Credit Credit Balance Factory Overhead Transactions Debit Acct. No. 540 Balance Credit complete this question by entering your answers in the tabs below. Required: 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