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

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 ...

Accounting systems and assurance assessment internal

Accounting Systems and Assurance Assessment: Internal Control and information quality Accounting students learn how to process, analyse and use accounting information. It is also necessary to learn what contributes to th ...

Accounting information systemsfor this assignment research

Accounting Information Systems For this assignment, research the Internet or Strayer databases to locate a firm that was involved in a fraud and / or embezzlement case. Explain how the firm's accounting information syste ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

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 assignment1 in the context of present value

Accounting Assignment 1. In the context of present value analysis, what is the discount rate? How does the discount rate affect the present value calculation? If the present value of a future return is calculated using a ...

Bubbles hot tubsbubbles hot tubs are a business that

Bubbles Hot Tubs Bubbles Hot Tubs are a business that manufactures and sells hot tubs to the UK market. At present the business manufactures three different types of hot tubs: The selling prices for each of the hot tubs ...

1 you are the manager of a payroll system your company is

1. You are the manager of a payroll system. Your company is going to replace the legacy payroll system with a more robust, Web-based version. Suggest two approaches that would minimize downtime and interruption to the pa ...

Garner company began operations on january 1 2010 and uses

Garner Company began operations on January 1, 2010, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2013. The following information is available for th ...

Focus of the final paperyouve just been hired onto abc

Focus of the Final Paper You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has an ...

  • 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