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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.
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.
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You are to maintain records and produce measures of inventories to reflect the July events of this company. The June balances: Raw Materials Inventory, $; Work in Process Inventory, $$ of direct materials and $ of conversion; Finished Goods Inventory, $; Sales, $; Cost of Goods Sold, $; Factory Payroll Payable, $; and Factory Overhead, $
Prepare journal entries to record the following July transactions and events.
Purchased raw materials for $ cash the company uses a perpetual inventory system
Used raw materials as follows: direct materials, $; and indirect materials, $
Recorded factory payroll payable costs as follows: direct labor, $; and indirect labor, $
Paid factory payroll cost of $ with cash ignore taxes
Incurred additional factory overhead costs of $ paid in cash.
Allocated factory overhead to production at of direct labor costs.
Information about the July inventories follows. Use this information with that from part to prepare a process cost summary, assuming the weightedaverage method is used. Round "Cost per EUP" to decimal places.
Units
Beginning inventory units
Started units
Ending inventory units
Beginning inventory
MaterialsPercent complete
ConversionPercent complete
Ending inventory
MaterialsPercent complete
ConversionPercent complete
Using the results from part and the available information, make computations and prepare journal entries to record the following:
Total costs transferred to finished goods for July.
Sale of finished goods costing $ for $ in cash.
Post entries from parts and to the following general ledger accounts.
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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