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Help 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, $25,000; Work in Process Inventory, $8,135 ($2,660 of direct materials and $5,475 of conversion: Finished Goods Inventory, $110,000; Sales, $o; 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 $125,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials. $52,440; and indirect materials, $10,000. c. Recorded factory wages payable costs as follows: direct labor, $202,250; and indirect labor $25,000. d. Pald factory payroll cost of $227.250 with cash (ignore taxes) e. Incurred additional factory overhead costs of $80,000 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.) 5,000 units 14.000 units 8.000 units Unita Teginning inventory started Ending inventory Beginning inventory Materials-Percent complete Conversion-Percent complete Ending inventory Materiale-Percent complete Conversion-Percent complete 1000 750 1000 401 Prepare journal entries to record the following July transactions and events. a. Purchased raw materials for $125,000 cash (the company uses a perpetual Inventory system). b. Used raw materials as follows: direct materials, $52,440, and indirect materials, $10,000. c. Recorded factory wages payable costs as follows: direct labor, $202,250; and indirect labor, $25,000. d. Pald factory payroll cost of $227,250 with cash (ignore taxes). e. Incutred additional factory overhead costs of $80,000 paid in cash 1. Applied factory overhead to production at 50% of direct labor costs. Show less View transaction list Journal entry worksheet Record the purchase of raw materials for cash. No: Enter debits before credits Transaction General Jouma Debit Credit Record the use of raw materials. Niche debts before credits Transaction General Journal Debat Credit S Prov 3 of 3 !! Nood 3 $ 4 % 5 7 9 P o Q W E R. Y T C A S D F. G H K Z C V B M N COMMITO command Prepare journal entries to record the following uy transactions and events. a. Purchased raw materials for $125,000 cash (the company uses a perpetual Inventory system). b. Used raw materials as follows: direct materials, 552,440, and indirect materials, $10,000 c. Recorded factory wages payable costs as follows: direct labor, 5202,250; and indirect labor, $25,000 d. Paid factory payroll cost of $227.250 with cash (grore taxes). e. Incurred additional factory overhead costs of $80,000 paid in cash 1. Applied factory overhead to production at 50% of direct labor costs. View transaction list Journal entry worksheet 2 4 6 Record direct and indirect labor costs incurred entor berec Transaction General Journal Debit Credit

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