Major League Bat Company manufactures baseball bats In addition to its goods 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 direct labor and factory overhead 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 are as follows Raw Materials Inventory, $25,000 Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead) Finished Goods Inventory, $116,000 Sales, $0 Cost of Goods Sold, $0 Factory Payroll, $0 and Factory Overhead, $0 1 Prepare journal entries to record the following July transactions and events a Purchased raw materials for $132,000 cash (the company uses a perpetual inventory system) b Used raw materials as follows direct materials, $49,900 and indirect materials, $15,000 c Incurred factory payroll cost of $173,650 paid in cash (ignore taxes) d Assigned factory payroll costs as follows direct labor, $142,650 and indirect labor, $31,000 e Incurred additional factory overhead costs of $42,795 paid in cash f Allocated 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 ) 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 $132,010 for $650,000 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 (Add any underapplied overhead to, or deduct any overapplied overhead from, the cost of goods sold )

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Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods.

Major League Bat Company manufactures baseball bats. In addition to its goods 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 direct labor and factory overhead 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 are as follows: Raw Materials Inventory, $25,000; Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead); Finished Goods Inventory, $116,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll, $0; and Factory Overhead, $0.

1.	Prepare journal entries to record the following July transactions and events.

a.	Purchased raw materials for $132,000 cash (the company uses a perpetual inventory system).
b.	Used raw materials as follows: direct materials, $49,900; and indirect materials, $15,000.
c.	Incurred factory payroll cost of $173,650 paid in cash (ignore taxes).
d.	Assigned factory payroll costs as follows: direct labor, $142,650; and indirect labor, $31,000.
e.	Incurred additional factory overhead costs of $42,795 paid in cash.
f.	Allocated 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.)

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 $132,010 for $650,000 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. (Add any underapplied overhead to, or deduct any overapplied overhead from, the cost of goods sold.)