Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Major League Bat Company manufactures baseball bats. Additionally to its goods in process inventories, 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 beginning of the process, and direct labor and factory overhead are applied uniformly all through the production process.

Required

You are required to maintain records and produce measures of inventories to reflect July events of this company.
Set up the following general ledger accounts and enter June 30 balances: Raw Materials Inventory, $25,000; Goods in Process Inventory, $8,135 ($2,660 of direct materials, $3,650 of direct labor, and $1,825 of overhead); Finished Goods Inventory, $110,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll, $0; and Factory Overhead, $0.

1. Create journal entries to record following July transactions and events.

a. Purchased raw materials for $125,000 cash (company uses a perpetual inventory system).

b. Used raw materials as follows: direct materials, $52,440; and indirect materials, $10,000.

c. Incurred factory payroll cost of $227,250 paid in cash (ignore taxes).

d. Assigned factory payroll costs as follows: direct labor, $202,250; and indirect labor, $25,000.

e. Incurred extra factory overhead costs of $80,000 paid in cash.

f. Allocated factory overhead to production at 50% of direct labor costs.

2. Information about July inventories follows. Use this information with that from part 1 to create a process cost summary, assuming weighted-average method is used.

Units
Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . 5,000 units
Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14,000 units
Ending inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000 units
Beginning inventory
Materials—Percent complete . . . . . . . . . . . . . . . . 100%
Labor and overhead—Percent complete . . . . . . . 75%
Ending inventory
Materials—Percent complete . . . . . . . . . . . . . . . . 100%
Labor and overhead—Percent complete . . . . . . . 40%

3. Using results from part 2 and available information, make calculations and prepare journal entries to record the following:

a. Total costs transferred to finished goods for July (label this entry g).

b. Sale of finished goods costing $265,700 for $625,000 in cash (label this entry h).

4. Post entries from parts 1 and 3 to the ledger accounts set up at beginning of the problem.

5. find out amount of gross profit from the sales in July.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92700

Have any Question? 


Related Questions in Accounting Basics

To make sure you are up to date on the special guidelines

To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56. He also asked you to show him, side by side, how government accounting journal en ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "free cash-flow valuations" please respond to the following: • Create an argument that use of the ...

Question 1based upon the material covered from the readings

Question #1 Based upon the material covered from the readings and/or videos from Week 8, highlight the three most important concepts you learned this week and how each of these concepts will help you in appreciating the ...

Assignment lasa ipo presentation amp myaccountinglab

Assignment: LASA: IPO Presentation & MyAccountingLab Post-Tests This assignment will consist of two parts. Part I: IPO Presentation: You work for a medium sized privately held electronics firm which is considering transi ...

Accounting case studyplease provide the answers to these

Accounting Case Study: Please provide the answers to these questions in the form of a paper. Please ensure the paper and all paper references are in APA format. CASE: Evaluating a Company's Budget Procedures. Tom Emory a ...

1 which of the following would definitely improve both

1. Which of the following would definitely improve both gross profit as reported in the Income Statement and gross profit margin (assuming cost price per unit stays the same)? A. Selling more units at a higher selling pr ...

Assignment the apportionmentyou are a census officer in a

Assignment: The Apportionment You are a census officer in a newly democratic nation and you have been charged with using the census data from the table below to determine how 100 congressional seats should be divided amo ...

Accountingabsorption and variable costing please respond to

Accounting Absorption and Variable Costing: Please respond to one of the following: Option 1 Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both t ...

This assignment will assess the following learning

This assignment will assess the following learning outcomes: - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounti ...

1 fair value determination of goodwill and calculating the

1) Fair value determination of goodwill and calculating the premium paid over market value in a merger: Using fair value accounting for goodwill, under FAS 141R, determine the amount of goodwill that "the acquiring compa ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro