Question

Check my 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. $30,000; Work in Process Inventory, $10,860 ($3.210 of direct materials and $7,650 of conversion: Finished Goods Inventory, $110.000: Sales. $0; Cost of Goods Sold. So Factory Wages Payable, 50; and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $170,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials, $65.040; and indirect materials, $15.500. c. Recorded factory wages payable costs as follows: direct labor $216,000, and indirect labor, $30,500 d. Paid factory payroll cost of $246,500 with cash (ignore taxes). e. Incurred additional factory overhead costs of $91000 paid in cash. f. Applied factory overhead to production at 50% of direct labor costs. 2. Information about the July inventories follows. Use this information with that from part 1 to prepare a assuming the weighted average method is used. (Round "Cost per EUP" to 2 decimal places.) 8,500 units 11,000 units 5.000 units Units Beginning inventory Started Ending Inventory Beginning inventory Materials-Percent complete Conversion-Percent complete Ending inventory PISY

Answer 1

	Account Titles	Debit	Credit
a	Raw Material Inventory	$       170,000
	Cash		$       170,000
b	Work in Process Inventory	$         65,040
	Manufacturing Overhead	$         15,500
	Raw material inventory		$         80,540
c	Work in Process Inventory	$       216,000
	Manufacturing Overhead	$         30,500
	Wages Payable		$       246,500
d	Wages Payable	$       246,500
	Cash		$       246,500
e	Manufacturing Overhead	$         91,000
	Cash		$         91,000
f	Work in Process Inventory	$       108,000
	Manufacturing Overhead		$       108,000