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Comprehensive Problem Major League Bat Company (Algo) 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, $24,000; Work in Process Inventory, $8,660 ( $2,910 of direct materials and $5,750 of conversion); Finished Goods Inventory, \$160,000; Sales, \$0; Cost of Goods Sold, \$0; Factory Payroll Payable, \$0; and Factory Overhead, \$0. 1. Prepare journal entries to record the following July transacpons 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 poid 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 wesghted average method is used. 3. Using the results from part 2 and the avallable information, make computations and prepare journal entries to record the following: t. Total costs transferred to finished goods for July. 9. Sale of finished goods costing $278,200 for $650,000 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. Post entries from parts 1 and 3 to the following general ledger accounts. Comprehensive Problem Major League Bat Company (Algo) 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, $24,000; Work in Process Inventory, $8,660 ( $2,910 of direct materials and $5,750 of conversion); Finished Goods Inventory, \$160,000; Sales, \$0; Cost of Goods Sold, \$0; Factory Payroll Payable, \$0; and Factory Overhead, \$0. 1. Prepare journal entries to record the following July transacpons 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 poid 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 wesghted average method is used. 3. Using the results from part 2 and the avallable information, make computations and prepare journal entries to record the following: t. Total costs transferred to finished goods for July. 9. Sale of finished goods costing $278,200 for $650,000 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. Post entries from parts 1 and 3 to the following general ledger accounts