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Comprehensive Problem Major League Bat Company (Algo) 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, $21000; Work in Process Inventory, $10,875 ($2,760 of direct materials and $8,115 of conversion); Finished Goods Inventory. $130,000; Sales, $0: Cost of Goods Sold, so, Factory Payroll Payable, $0; and Factory Overhead, $o. 1. Prepare journal entries to record the following July transactions and events a. Purchased raw materials for $125,000 cash. b. Used raw materials as follows: direct materials, $46,640; and indirect materials, $11,000 c. Recorded factory wages payable costs as follows: direct labor. $204,750, and indirect labor, $26.000 d. Incurred other actual factory overhead costs of $65,375 paid in cash e. Applied factory overhead to production at 50% of direct labor costs. 2. Information about the July work in process (WIP) Inventory follows. Use this information with that from part 1 to prepare a production cost report, assuming the weighted average method is used, 2. Information about the July work in process (WIP) inventory follows. Use this information with that from parti to prepare a production cost report, assuming the weighted average method is used. 6,000 units 13,000 units 12,000 units 7,000 units Units Beginning WIP inventory Started Units transferred out Ending WIP inventory Beginning WIP Inventory Direct materials-Percent complete Conversion-Percent complete Ending WIP Inventory Direct materials-Percent complete Conversion-Percent complete 100% 75 lees 40% 3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: f. Total costs transferred to finished goods for July g. Sale of finished goods costing $270,700 for $635,000 in cash 4. Post entries from parts 1 and 3 to the following general ledger accounts. 5. Compute the amount of gross profit from the sales in July Caminata "hiemsetinn hantarinn uw neurore in the the holes Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $125,000 cash. b. Used raw materials as follows: direct materials, $46,640; and indirect materials, $11,000. c. Recorded factory wages payable costs as follows: direct labor, $204,750; and indirect labor, $26,000. d. Incurred other actual factory overhead costs of $65,375 paid in cash. e. Applied factory overhead to production at 50% of direct labor costs. Show le View transaction list View journal entry worksheet No Transaction General Journal Raw materials inventory Cash Credit Debit 125.000 1 125,000 2 b1 Work in process inventory 46 840 question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Information about the July work in process (WIP) inventory follows. Use this information with that from part 1 to prepare a production cost report, assuming the weighted average method is used. (Round "Cost per EUP" to 2 decimal places.) Unit reconciliation: Units to account for: Beginning work in process 6,000 Units started this period Total units to account for 19.000 Units accounted for: Completed and transferred out 12.000 Ending work in process 7,000 Total units accounted for 19,000 Equivalent units of production (EUP)-weighted average method Direct Materials Conversion +33.000 . Check Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: f. Total costs transferred to finished goods for July. g. Sale of finished goods costing $270,700 for $635,000 in cash. Show less View transaction list View journal entry worksheet No Transaction Debit Credit 1 General journal Finished goods inventory Work in process inventory 5 286,800 286.800 2 2 91 635,000 Cash Sales 635,000 3 92 270,700 Cost of goods sold Finished goods inventory 270,700