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

  

      

     

    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 finished goods.
 

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Beginning Inventory Inventory Ending Raw materlals Inventory $ 54,000 $ 82,500 Goods in process Inventory 117,000 187,500 Finished goods Inventory... 120,000 148,500 The following additional information describes the company's production activities for June. Raw materials purchases (on credit) $150,000 Factory payroll cost (pald in cash) Other overhead cost (Other Accounts credited) 300,000 127,875 Materials used Direct $ 90,000 Indirect 31,500 Labor used Direct $262,500 Indirect 37,500 Overhead rate as a percent of direct labor 75% Sales (on credit) $750,000 Beginning Inventory Inventory Ending Raw materlals Inventory $ 54,000 $ 82,500 Goods in process Inventory 117,000 187,500 Finished goods Inventory... 120,000 148,500 The following additional information describes the company's production activities for June. Raw materials purchases (on credit) $150,000 Factory payroll cost (pald in cash) Other overhead cost (Other Accounts credited) 300,000 127,875 Materials used Direct $ 90,000 Indirect 31,500 Labor used Direct $262,500 Indirect 37,500 Overhead rate as a percent of direct labor 75% Sales (on credit) $750,000

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