Spangenberg Products manufactures computer cases. All material is added at the start of production and overhead is applied to each product at the rate of 70 percent of direct labor cost. At the beginning of July, there were no units in the Finished Goods Inventory. The firm's inventory cost records provide the following information:

At the end of July, the cost of the Finished Goods Inventory was determined to be $124,000.
a. Compute the following:
1. Equivalent units of production using the weighted average method.
2. Unit production costs for material, labor, and overhead.
3. Cost of goods sold.
b. Prepare the journal entries to record the July transfer of completed goods and the
July cost of goodssold.

Units DM Cost DL Cost Work in Process Inventory, 7/1 (70% complete as to labor) Units started in production Costs for July Work in Process Inventory, 7/31 100,000 1500,000 $ 750,000 S 215,000 5,650,000 4,105,000 (60% complete as to labor) 400,000