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15 Comprehensive Problem Major League Bat Company Major League Bat Company manufactures baseball bats. In addition to its work in process i 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 12 inventories, the company maintains 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, $8,385 ($2,960 of direct materials and $5,425 of conversion); Finished Goods Inventory, $170,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll Payable, $0; and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $145,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials. $72,040; and indirect materials, $13,000. c. Recorded factory payroll payable costs as follows: direct labor, $209.750; and indirect labor, $28,000 d. Paid factory payroll cost of $237,750 with cash (ignore taxes). e. Incurred additional factory overhead costs of $86,000 paid in cash. f, Allocated factory overhead to production at 50% of direct labor costs. Journal entry worksheet d allocated at 50% of direct labor. 15 : e. Incurred additional factory overhead costs of $86,000 paid in cash. f. Allocated factory overhead to production at 50% of direct labor costs. 3.12 X: Import a new list Record the purchase of raw materials for cash. 2 Record the use of raw materials. 3 Record direct and indirect labor costs incurred. 4 Record factory payroll paid in cash. S Record other overhead paid in cash. Credit Record overhead allocated at 50% of direct labor. Note:journal entry has been entered View general journal Record entry Clear entry method is used. (Round "Cost per EUP" to 2 decimal places.) 8,000 units 17,000 units 11,000 units 100 sion-Percent complete 100% 308 15 3. Using the results from part 2 and the available information, make and prepare journal entries to record the following: points g. Total costs transferred to finished goods for July h. Sale of finished goods costing $280,700 for $655,000 in cash Journal entry worksheet Record entry Clear entry K Prev 15 of 16 Next Ch June 30 June 30 June 30 KPrev 15 of 16 Next > 15 Acct. No. 413 Cost of t. No. 502 Date Debit 312 Factory Overhead Acct. No. 540 Date Print 5. Compute the amount of gross profit from the sales in July. (Add any underapplied overhead to, or deduct any overapplied overh from, the cost of goods sold.) Prey 15 of 16