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, $31.000, Work in Process Inventory, $7,985 ($3,260 of direct materials and 54.725 of conversion: Finished Goods Inventory. $120.000, Sales, $0; Cost of Goods Sold. $0; Factory Wages Payable, 30, and Factory Overhead. $0. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $175,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials, $45,040; and indirect materials, $16.000. c. Recorded factory wages payable costs as follows: direct labor, $217,250; and indirect labor, $31,000. d. Paid factory payroll cost of 5248.250 with cash (ignore taxes). o. Incurred additional factory overhead costs of $92,000 paid in cash. t. 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.) units 12, units it Benevento Ending to Beginning inventory scent complete Conversion cent complete Inventory Materials cant comte Conversion-Percent complete 10 SON 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: 9. Total costs transferred to finished goods for July h. Sale of finished goods costing $295,700 for $685,000 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.) Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, weighted-average method is used. (Round "Cost per EUP" to 2 decimal places.) Total costs to account for: Cost of beginning work in process Costs incurred this period Total costs to account for $ 0 0 Unit reconciliation: Units to account for: Beginning work in process inventory - units Units started this period Total units to account for Total units accounted for: Units completed and transferred out Ending work in process units Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP-Materials % Labor EUP Conversion (Units completed and transferred out Ending work in process units Total units Materials Conversion Costs Costs EUP EUP 0 0 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 Cost per EUP Total cost Cost per EUP $ 0.00 Total cost $ 0 $ 0.00 0 Conversion Total cost of ending goods in process Total costs accounted for Using the results from part 2 and the available information, make computations and prepare journal entries to record the f 9. Total costs transferred to finished goods for July. h. Sale of finished goods costing $295,700 for $685,000 in cash. Debit View transaction list View journal entry worksheet No Transaction General journal 1 Finished goods inventory Work in process inventory Credit Cash Sales Post entries from parts 1 and 3 to the following general ledger accounts. Raw Materials Inventory Acct. No. 132 Work in Process Inventory Transactions Debit Credit Balance Transactions Debit Credit June 30 31,000 June 30 (6) b) c) (b) (0) (9) Acct. No. 133 Balance 7,985 Acct. No. 212 Finished Goods Inventory Transactions Debit Credit June 30 Acct. No. 135 Balance 120,000 Factory Wages Payable Transactions Debit Credit Balance 1) th) Sales Debit Acct. No: 413 Balance Transactions Cost of Goods Sold Transactions Debit (h) Acct. No. 502 Balance Credit Credit Factory Overhead Transactions Debit Acet. No: 540 Balance Credit Required I 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