part 4

1 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, So: Cost of Goods Sold, $o; Factory Wages Payable, $o: and Factory Overhead, $o. 1. Prepare journal entries to record the following July transactions and events. 3. 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 lobor costs. Book 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.) rences 5,000 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 1005 755 1005 40 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 $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) Prev 1 of 2 Next > 1 Raw Materials Inventory Transactions Debit June 30 Acct. No. 132 Balance 25.000 Credit Work in Process Inventory Transactions Debit Credit June 30 Acct. No. 133 Balance 8,135 Acct. No. 212 Balance Factory Wages Payable Transactions Debit Credit Finished Goods Inventory Transactions Debit Credit June 30 Acct. No. 135 Balance 110,000 nt nces Sales Debit Acct. No. 413 Balance Cost of Goods Sold Transactions Debit Acct. No. 502 Balance Transactions Credit Credit Factory Overhead Transactions Debit Acct. No. 540 Balance Credit Prey 1 of 2 Next A