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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, $25,000; Work in Process Inventory, $8,135 ($2,660 of direct materials and $5,475 of conversion): Finished Goods Inventory. $110,000; Sales, $o; Cost of Goods Sold, $o: Factory Payroll Payable, 50; and Factory Overhead, $o. 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 followsdirect 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 (ignore taxes) e. Incurred additional factory overhead costs of $80,000 paid in cash 1. Allocated factory overhead to production at 50% of direct labor costs. View transaction ist Journal entry worksheet arch 14-16 0 Saved Help Journal entry worksheet Record direct and indirect labor costs incurred. Note: Enter debits before credits Transaction General Journal Debit Credit C. Record entry Clear entry View general Journal Next > earch Journal entry worksheet Journal entry worksheet 1 2 3 4 5 5 6 > Record overhead allocated at 50% of direct labor. Note: Enter debits before credits. Transaction General Journal Debit Credit f. Record entry Clear entry View general journal Next 2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary assuming the weighted average method is used. (Round "Cost par EUP" to 2 decimal places.) 5,eee units 14,000 units 8,000 units Units Beginning inventory Started Ending inventory Beginning inventory Materials-Percent complete Conversion-Percent complete Ending inventory Materials-Percent complete Conversion-Percent complete 100% 75% 100% 40% Total costs to account for: Total costs to account for Unit reconciliation: RE Next > ere to search Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP-Materials % Labor EUP Conversion Total units Cost per equivalent unit of production Materials Conversion Costs Costs Total costs FRID ELD Next > to search Cost per equivalent unit of production Materials Conversion Costs EUP Costs EUP Cost per EUP Total cost Total costs Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total costs accounted for: Cost of units transferred out: EUP Direct materials Conversion Total costs transferred out Costs of ending goods in process EUP Direct materials Conversion Total cost of ending goods in process Total costs accounted for Cost per EUP Total cost Next > search Submit 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 $265700 for $625,000 in cash View transaction list Journal entry worksheet to search Journal entry worksheet 1 N 3 Record sale of finished goods for cash. Note: Enter debits before credits Debit General journal Transaction Credit h. View general journal Record entry Clear entry Next > Journal entry worksheet er 14-16 1 Saved Help Save & E 4. Post entries from parts 1 and 3 to the following general ledger accounts. Acct. No. 132 Raw Materials Inventory Debit Date Credit Balance Work in Process Inventory Date Debit Credit June 30 Acct. No. 133 Balance 8,135 June 30 Acct. No. 135 Finished Goods Inventory Date Debit Credit June 30 Factory Wages Payable Debit Acct. No. 212 Balance Date Credit Balance 110,000 Acct. No. 413 Cost of Goods Sold Sales ct No. 502 Next > o search ducation.com/ext/map/index.html?con-con&external browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252 Epter 14-16 Saved Help Save & EXE Sales Debit Acct. No. 413 Balance Cost of Goods Sold Debit Acct. No. 502 Balance Date Credit Date Credit Factory Overhead Debit Acct. No. 540 Balance Date Credit Next > to search 5. Compute the amount of gross profit from the sales in July (Add any underapplied overhead to, or deduct any overapplied overhead from the cost of goods sold.) Gross profit to search 4 TL