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, $25,000; Work in Process Inventory, $8,135 ($2,660 of direct materials and $5,475 of conversion): Finished Goods Inventory, $110,000; Sales, $o; Cost of Goods Sold, $0Factory Wages Payable, $0; and Factory Overhead, So. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $125,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials, $52.440; and indirect materials, $10,000. c. Recorded factory wages payable costs as follows: direct labor, $202.250; and indirect labor, $25,000 d. Paid factory payroll cost of $227.250 with cash (ignore taxes). e. Incurred additional factory overhead costs of $80,000 paid in cash 1. 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.) 5.000 units 14,000 units 3,000 units Units Meginning inventory Started Ending inventory Beginning inventory Materiale-Percent complete Conversion-Percent complete Ending inventory Materials-Percent completo Conversion-Percent complete 1001 750 1000 404 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the Tomb g. Total costs transferred to finished goods for July. h. Sale of finished goods costing $265,700 for $625,000 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Post entries from parts 1 and 3 to the following general ledger accounts. Credit Raw Materials inventory Transactions Debit June 30 (0) 125,000 (9) Acct. No. 132 Balance 25,000 150.000 87 560 Work in Process Inventory Transactions Debit Credit June 30 (b) 52.440 (c) 202,250 101,125 19) 355,815 Acct. No. 133 Balance 8.135 60,575 262,825 363,950 8,135 62.440 OOOO Acct. No. Acct. No. 212 Finished Goods Inventory 135 Factory Wages Payable Post entries from parts 1 and 3 to the following general ledger accounts. Acct. No. 132 Balance Credit Raw Materials Inventory Transactions Debit June 30 a) 125,000 (9) 25,000 150,000 87.560 Work in Process Inventory Transactions Debit Credit June 30 (b) 52,440 (c) 202,250 (0 101,125 (9) 355,815 X Acct. No. 133 Balance 8,135 60,575 262,825 363,950 8,135 62,440 Olololo Factory Wages Payable Credit Finished Goods Inventory Transactions Debit Credit June 30 (6) x 241,103 (h) 265,700 Acct. No. 135 Balance 110,000 351,103 85,403 Transactions (c) Debit 202,500 25,000 Acct. No. 212 Balance (202,500) (227.500) (250) (227.500) (d) 227.250 227,250 Cost of Goods Sold Sales Debit 359,300 Credit Transactions ch) Acct. No. 413 Balance (359,300) 0 Credit Transactions (n) Debit 265,700 Acct. No. 502 Balance 265,700 359,300