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Comprehensive Problem Major League Bat Company (Algo) Mojor 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 es 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, $24,000, Nork in Process Inventory, $8,660 (\$2,910 of direct materials and $5,750 of conversion); Finished Goods Inventory, $160.000; Salest $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 $140,000 cash. b. Used raw materials as follows: direct materials, $65,240; and indirect materials, $12,500. c. Recorded factory wages payable costs as follows: direct labor, $208,500; and indirect labor, $27,500. d. Incurred other actual factory overhead costs of $64,250 pald in cash. e. Applied factory overhead to production at 50% of direct labor costs. 2. Information about the July work in process (WIP) inventory follows. Use this information with that from part 1 to prepare a production cost report, assuming the weighted average method is used. 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: t. Totol costs transterred to finished goods for July. 9. Sole of finished goods costing $278,200 for $650,000 in cash. 4. Post entries from parts 1 ond 3 to the following general ledger occounts. 5. Compute the amount of gross proft from the sales in July. Complete this question by entering your answers in the tabs below. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: f. Total costs transferred to finished goods for July. g. Sale of finished goods costing $278,200 for $650,000 in cash. Journal entry worksheet Record the transfer of goods to Finished Goods inventory. Notet Enter debits before credits