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, $$20,000$; Work in Process Inventory, $$10,010($ $$2,710$ of direct materials and $$7,300$ of conversion$)$; Finished Goods Inventory, $$120,000$; Sales, $$0$; Cost of Goods Sold, $$0$; Factory Payroll Payable, $$0$; and Factory Overhead, $$0.$

Prepare journal entries to record the following July transactions and events.

a$.$ Purchased raw materials for $$120,000$ cash.

b$.$ Used raw materials as follows: direct materials, $$41,040$; and indirect materials, $$10,500.$

c$.$ Recorded factory wages payable costs as follows: direct labor, $$203,500$; and indirect labor, $$25,500.$

d$.$ Incurred other actual factory overhead costs of $$65,750$ paid in cash.

e$.$ Applied factory overhead to production at $50\%$ of direct labor costs.

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.

$\backslash$table$[[$Units$,5,500$ units$],[$Beginning WIP inventory,$12,000$ units$],[$Started$,11,500$ units$],[$Units transferred out,$6,000$ units$],[$Ending WIP inventory,$],[,100\%$