(Algo) REQUIRED 4
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, $31,000; Work in Process Inventory, $7,985
($3,260 of direct materials and $4,725 of conversion); Finished
Goods Inventory, $120,000; Sales, $0; Cost of Goods Sold, $0;
Factory Payroll Payable, $0; and Factory Overhead, $0.
1. Prepare journal entries to record the following
July transactions and events.
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.
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 $295,700
for $685,000 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.
- Comprehensive Problem Major League Bat Company Algo Required 4 Major League Bat Company Manufactures Baseball Bats In 1 (75.51 KiB) Viewed 39 times