Question

please answer all parts

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, $37,000; Work in Process Inventory, $12,035 ($3,560 of direct materials and $8,475 of conversion); Finished Goods Inventory, $180,000; Sales, $0; Cost of Goods Sold, $0; Factory Wages Payable, $0; and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $205,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials. $58,540: and indirect materials, c. Recorded factory wages payable costs as follows: direct labor, $224,750; and indirect labor, $34,000. d. Paid factory payroll cost of $258,750 with cash (ignore taxes) e. Incurred additional factory overhead costs of $98,000 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 process cost summary, assuming the weighted average method is used. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Part 1 journal entries

Statement showing Journal July transctions Enaries Kaw Material Inventory Alc de $205000 To Cash Ald $ 205000 ng raw material purchased)

Part 2

Statement showing process cost summary

part 2 Process cost summary Step 1: Physical Units Schedule Units to Account For Opening Inventory Units started Physical Units 12000 15000 Units to account for 27000 Units Account For Units completed closing inventory 18000 9000 (27000-9000) Units to account for 27000 Step 2:Calculate Equivalent Units Material Units % of completed material Conversion % of completed conversion Units Completed Ewip Ending 18000 9000 18000 3600 100 4096 Equivalents Units as weighted average method 27000 21600 Step 3: Cost per Equivalent units cost in beginning wip 3560 8475 cost added in july 58540 19000 direct material indirect direct material 224750 direct labour 34000 Indirect labour 112375 factory overhead total cost in beg wip and cost added in july 81100 379600

total Cost in beg wip and cost added in july Equivalent units 81100 27000 379600 27000 cost per equivalent Units 3.00 14.06 17.06 Step 4:Cost of goods transferred & eq wip cost of goods transferred out: 18000 17.06 307080 Ewip: Direct Material Conversion cost 9000 3600 14.06 14.06 126540 50616 step 5 reconsilation Units to Account For Opening Inventory Units started Physical Units 12000 15000 12035 472201 Units to account for 27000 484236 Units Account For Units completed closing inventory 18000 9000 307080 177156 Units to account for 27000 484236

'part 3

g)Finished Goods inventory A/c DR 307080

To wip Inventory A/c 307080

( bein completed cost of goods of 18000units transfered to finished cost inventory a/c)

h) cash A/c dr 715000

To cost of goods sold A/c 310700

To gross profit A/c. 404300