PROBLEMS P6-1 The following information were obtained from the books and records of Bridgeport Corporation: Beginning inventories: Raw materials 8,000 Work in process 3,200 Finished goods 6,000 Ending inventories: Raw materials ? Work in process 7,200 Finished goods 2,100 Sales 107,500 Purchases of materials 15,800 Cost of direct materials used excluding rework 14,000 Cost of indirect materials used 3,800 Direct labor cost incurred excluding rework (350 hours) Indirect labor costs incurred Sales salaries and other expenses Administrative salaries and expense Net factory payroll after withholding Factory overhead rate per direct labor hour Other factory overhead incurred excluding spoilage and rework 20,150 24,600 4,600 12,000 4,000 24,000 78 Spoilage: Normal spoilage common to all jobs Disposal value of normal spoilage Abnormal spoilage Disposal value of abnormal spoilage 4,000 400 1,000 20 Cost of rework common to all jobs (not included in the cost of direct materials and direct labor above) Direct material Direct labor (10 hours) Sales of normal scrap common to all jobs: (cost reduction method is used and scrap is not inventoried) P1,000 800 1,200 2. 3. 4 5. Based on the above data, prepare the following journal entries: 1. To record the purchase of materials To record the materials usage, excluding rework To record the factory payroll To record the payment of payroll to the employees To record the distribution of payroll costs excluding rework 6. To record other factory overhead costs excluding spoilage and rework To record the applied factory overhead excluding rework To record the spoilage To record the rework 10 To record the sale of scrap 11 To record the cost of goods manufactured 12. To record the cost of goods sold 13 To record the sale 7. 8. 9