eBook 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.) 12,000 units 15,000 units 9,000 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% Equivalent units of production (EUP)- weighted average method Units % Materials EUP-Materials % Labor EUP- Conversion Materials Conversion Costs Costs EUP EUP 0 0 Units completed and transferred out Ending work in process - units Total units Cost per equivalent unit of production Cost of beginning work in process Costs incurred this period 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 Direct materials Conversion Total cost of ending goods in process Total costs accounted for Cost per EUP Total cost Cost per EUP Total cost $ 0.00 $ 0 $ 0.00 0 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, $37.000; Work in Process Inventory, 512.035 ($3,560 of direct materials and $8,475 of conversion); Finished Goods Inventory, $180,000; Sales, $0: Cost of Goods Sold, $0; Factory Wages Payable. $0; and Factory Overhead, so. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $205.000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials, $58,540, and indirect materials. $19,000 c. Recorded factory wages payable costs as follows: direct labor, $224,750; and indirect labor, $34,000 d. Paid factory payroll cost of $258,750 with cash (ignore taxes). e. Incurred additional factory overhead costs of $98,000 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.) 12,000 units 15,000 units 9,000 units Units Beginning inventory Started Ending Inventory Beginning inventory Materials-Percent complete Conversion-Percent complete Ending inventory Materials-Percent complete Conversion-Percent complete 100% BOE 100% 40% 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 $310,700 for $715,000 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
