The first two pics are the intructions and the last two pics are the answer sheet. thank you!
ACCT 1110 Comprehensive Problem 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. You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 account balances are as follows: Raw Materials Inventory $ 25,000 Work in Process Inventory: $ 8,135 Direct Materials in WIP $ 2,660 Conversion Costs in WIP $ 5,475 Finished Goods Inventory $ 110,000 Sales Cost of Goods Sold Factory Payroll Payable Factory Overhead Required (input all of your answers in the Comprehensive Problem Answer Sheet available in Blackboard): 1) Prepare journal entries to record the following July transactions and events; a) Purchased raw materials for $125,000 cash (the company uses a perpetual inventory system). b) Used raw materials as follows: direct materials, $52.440; and indirect materials, $10,000 C) Recorded factory payroll payable costs as follows: direct labor, $202,250; and indirect labor, $25,000. d) Paid factory payroll cost of $227,250 with cash lignore taxes). e) Incurred additional factory overhead costs of $80,000 paid in cash. f) Applied factory overhead to production at 50% of direct labor costs. 2) Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary (like the one on page 718 in your textbook) assuming the weighted average method is used. The Answer Sheet has the summary broken into 5 parts to aid in preparation Units 5,000 units 14,000 units 8,000 units Beginning Inventory Started Ending inventory Beginning inventory Materials - % complete Conversion - % complete Ending Inventory Materials -% complete Conversion - % complete 100% 75% 100% 40% 3) Using the results from part 2) and the available information, make computations and prepare journal entries to record the following: g) Total costs transferred to finished goods for July. h) Sale of finished goods costing $265,700 for $625,000 in cash. i) Journal entry to move under/overapplied factor overhead to Cost of Goods Sold. 4) Compute the amount of gross profit from sales in July. (Make sure you take into account journal entry i) when calculating Cost of Goods Sold. ACCT 1110 Comprehensive Problem Answer Sheet Name Part 1) Account Debit Credit Calculate costs charged to Production (Total Costs to Account for): ACCT 1110 Comprehensive Problem Answer Sheet (Cont'd) Part 2) cont'd Calculate the costs assigned to Units completed and transferred out and Ending Work In Process: Part 3) Account Debit Credit to 2 Part 4) Calculate Gross Profit (show your work): ACCT 1110 Comprehensive Problem 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. You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 account balances are as follows: Raw Materials Inventory $ 25,000 Work in Process Inventory: $ 8,135 Direct Materials in WIP $ 2,660 Conversion Costs in WIP $ 5,475 Finished Goods Inventory $ 110,000 Sales Cost of Goods Sold Factory Payroll Payable Factory Overhead Required (input all of your answers in the Comprehensive Problem Answer Sheet available in Blackboard): 1) Prepare journal entries to record the following July transactions and events; a) Purchased raw materials for $125,000 cash (the company uses a perpetual inventory system). b) Used raw materials as follows: direct materials, $52.440; and indirect materials, $10,000 C) Recorded factory payroll payable costs as follows: direct labor, $202,250; and indirect labor, $25,000. d) Paid factory payroll cost of $227,250 with cash lignore taxes). e) Incurred additional factory overhead costs of $80,000 paid in cash. f) Applied factory overhead to production at 50% of direct labor costs. 2) Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary (like the one on page 718 in your textbook) assuming the weighted average method is used. The Answer Sheet has the summary broken into 5 parts to aid in preparation Units 5,000 units 14,000 units 8,000 units Beginning Inventory Started Ending inventory Beginning inventory Materials - % complete Conversion - % complete Ending Inventory Materials -% complete Conversion - % complete 100% 75% 100% 40% 3) Using the results from part 2) and the available information, make computations and prepare journal entries to record the following: g) Total costs transferred to finished goods for July. h) Sale of finished goods costing $265,700 for $625,000 in cash. i) Journal entry to move under/overapplied factor overhead to Cost of Goods Sold. 4) Compute the amount of gross profit from sales in July. (Make sure you take into account journal entry i) when calculating Cost of Goods Sold. ACCT 1110 Comprehensive Problem Answer Sheet Name Part 1) Account Debit Credit Calculate costs charged to Production (Total Costs to Account for): ACCT 1110 Comprehensive Problem Answer Sheet (Cont'd) Part 2) cont'd Calculate the costs assigned to Units completed and transferred out and Ending Work In Process: Part 3) Account Debit Credit to 2 Part 4) Calculate Gross Profit (show your work)
