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. $36,000; Work in Process Inventory, $9,810 ($3,510 of direct materials and $6,300 of conversion); Finished Goods Inventory, $170,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll Payable, $0; and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $200,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials, $52,590; and indirect materials, $18,500. c. Recorded factory payroll payable costs as follows: direct labor, $223,500; and indirect labor, $33,500. d. Paid factory payroll cost of $257,000 with cash (ignore taxes). e. Incurred additional factory overhead costs of $97,000 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.) 11,500 units 14,000 units 8,000 units Units Beginning inventory Started Ending inventory Beginning inventory Materials-Percent complete Conversion-Percent complete Ending inventory Materials-Percent complete Conversion-Percent complete 100% 75% 100% 40% Total costs to account for: Costs incurred this period Total costs to account for: Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials % Labor EUP- Conversion Total units Cost per equivalent unit of production Materials Conversion Costs EUP Costs EUP Cost per EUP Total cost 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 $ 0.00 | $ 0.00 Total cost $ 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 $308,200 for $710,000 in cash. View transaction list Journal entry worksheet 2 3 Record the transfer of goods to Finished Goods Inventory. Note: Enter debits before credits. Transaction General journal Debit Credit Record entry Clear entry View general journal 4. Post entries from parts 1 and 3 to the following general ledger accounts. Raw Materials Inventory Debit Acct. No. 132 Balance Credit Date June 30 Work in Process Inventory Date Debit Credit June 30 Acct. No. 133 Balance 9,810 Finished Goods Inventory Debit Credit Acct. No. 135 Balance 170,000 Factory Wages Payable Debit Acct. No. 212 Balance Date Date Credit June 30 Sales Debit Acct. No. 413 Balance Cost of Goods Sold Debit Acct. No. 502 Balance Date Credit Date Credit Factory Overhead Debit Acct. No. 540 Balance Date Credit