Question

Check 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 $7650 of conversion): Finished Goods Inventory. $ 110,000: Sales. $0: Cost of Goods Sold. So: Factory Wages Payable, $0; and Factory Overhead. $0. 1. Prepare journal entries to record the following July transactions and events. o. 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, $ 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 to prepare a process cost summary assuming the weighted average method is used. (Round "Cost per EUP' to 2 decimal places 3,500 units 11.00 units 5. ts Beginning inventory Started Endir inventory Beginning inventory Materials-Percent complete Conversion Percent complete Ending inventory

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Major League bat Company Part 1 Part 2 Date Account Debit Credit а $ 170,000 Raw material inventory Cash (To record purchase of inventory) $ 170,000 Total Cost to account for Cost of Beginning WIP Direct Material Conversion Cost Cost incurred during period Direct Material Conversion Cost $ $ 3,210 7,650 $ 10,860 $ $ 65,040 15,500 $ 65,040 $ 324,000 $ 389,040 Work in process inventory Factory Overhead Raw material inventory (To record use of material) $ 80,540 Total Cost to account for $ 399,900 Unit to account for $ 216,000 $ 30,500 Work in process inventory Factory Overhead Factory wages Payable (To record factory wages incurred) $ 246,500 Beginning work in process Unit started during the period Total Units to account for 8,500 11,000 19,500 $ 246,500 Factory wages Payable Cash (To record payment of wages) $ 246,500 Units accounted for $ 91,000 Factory Overheads Cash (To record payment of overheads) Completed and Transferred out Ending Work in process Total Units accounted for 14,500 5,000 19,500 $ 91,000 Equivalent units of production: $ 108,000 Work in process inventory Factory Overhead (To record overheads applied) $216,000*50% $ 108,000 Units completed and transferred out Ending work in process Total Units Units 14,500 5,000 % Material EUP-Material: % Labor 100% 14,500 100% 100% 5,000 19,500 Material EUP-Conversion 14,500 2,000 16,500 Conversion Part 3 Event Account Debt Credit Cost per equivalent unit of production: Cost of begging WIP Cost incurred during period Total Cost $ 342,200 Finished Goods Inventory Work in process inventory (To record transfer of inventory) $ $ $ 3,210 65,040 68,250 $ $ $ 7,650 324,000 331,650 342,200 Cost per EUP BA $ 3.50 $ 20.10 $ 680,000 Cash Sales (To record sale) 680,000 Total Cost accounted for: EUP cost per EUP Total Cost $ 293,200 Cost of Goods Sold Finished Goods Inventory (To record cost of goods sold) Cost of units transferred out Direct Material Conversion Cost Total Cost transferred Out 14,500 $ 14,500 $ 3.50 20.10 293,200 $ $ $ 50,750 291,450 342,200 Cost of Ending WIP Direct Material Conversion Cost Total cost of Ending WIP Total Cost accounted for 5,000 2,000 $ $ 3.50 20.10 $ $ $ 17,500 40,200 57,700 $ 399,900

Part 4 Date Credit Date Beginning Raw Material Inventory Debit Credit $ 30,000 $ 170,000 $ $ Balance $ 30,000 $ 200,000 65,040 $ 134,960 15,500 $ 119,460 Factory Overhead Debit $ 15,500 $ 30,500 $ 91,000 Balance $ 15,500 $ 46,000 $ 137,000 108,000 $ 29,000 ь b $ Balance Part 5 Date Beginning b Work in process inventory Debit Credit $ 10,860 $ 65,040 $ 216,000 $ 108,000 $ $ 10,860 $ 75,900 $ 291,900 $ 399,900 $ 57,700 Sales Less: Cost of Goods Sold Less: Underapplied overhead Gross Margin $ $ $ 680,000 -293,200 29,000 357,800 342,200 Date Beginning Finished Goods Inventory Debit Credit $ 110,000 $ 342,200 $ Balance $ 110,000 $ 452,200 $ 159,000 8 h 293,200 Date Factory wages Payable Debit Credit $ $ 246,500 Balance 246,500 $ 246,500 Sales Date Debit Cred Balance $ 680,000 Date Cost of Goods Sold Debit Credit $ 293,200 Balance $ 293,200