Select Toys Company manufactures video game consoles and accounts for product costs using process costing. The following information is available regarding its June inventories.


The following additional information describes the company€™s production activities for June.
Raw materials purchases (on credit) . . . . . . . . . . . . . . . . . $100,000
Factory payroll cost (paid in cash) . . . . . . . . . . . . . . . . . . 200,000
Other overhead cost (Other Accounts credited) . . . . . . . 85,250
Materials used
Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000
Indirect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000
Labor used
Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $175,000
Indirect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Overhead rate as a percent of direct labor . . . . . . . . . . . 75%
Sales (on credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000
Required
1. Compute the cost of (a) products transferred from production to finished goods, and (b) goods sold.
2. Prepare journal entries dated June 30 to record the following production activities during June:
(a) Raw materials purchases,
(b) Direct materials usage,
(c) Indirect materials usage,
(d) Payroll costs,
(e) Direct labor costs,
(f) Indirect labor costs,
(g) Other overhead costs,
(h) Overhead applied,
(i) Goods transferred from production to finished goods, and
(j) Sale of finishedgoods.

Transcribed Image Text:

Beginning Ending Inventory Inventory Raw materials inventory Goods in process inventory.. Finished goods inventory $36,000 55,000 125,000 99,000 a. 78.000 25 80,000