This file attached is a previously answered question with the given scenario and task as well as the solution. However the solution is not explained. Is this in a T-account format? I suppose what I am

This file attached is a previously answered question with the given scenario and task as well as the solution. However the solution is not explained. Is this in a T-account format? I suppose what I am asking for is a break down of how the solution was achieved. The JE’s (if any are required), T-accounts, FIFO charts, balance sheet (if needed) and gross profit sheet (well, that is given but you get my point). Any real insight into this problem would be greatly appreciated!

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YUM YUM COOKIES Company manufactures cookies. Materials are added in the
Baking Department. After processing, the cookies are moved to the Packing Department
where more materials are added. The completed packages are then moved to Finished
Goods.
Task:
Using the data below the month of July, determine the July Gross Profit using FIFO
inventory methods.
June 30:Raw Material Inventory: $235,000
Baking Department : WIP # = 0 WIP $$ = 0
Packing Department : WIP # = 6000 cases at 80% completion, WIP$ = $95,000
Finished Goods Inventory : WIP # 20,000 cases WIP $ = $300,000
July Transactions:
Materials Purchased on Account:$520,000
# Cases started:Baking Department: 50,000
Packing Department: 35,000
Materials Requisitioned:Baking Dept:$225,000 DM, $25,000 IM
Packing Dept: $40,250 DM, $9,750 IM
Labor Costs:Baking Dept:$106,000 DL, $12,000 IL
Packing Dept: $60,000 DL, $17,000 IL
Misc. Expenses:Baking Dept: $18,000
Packing Dept: $14,600
Prepaid Expenses:Baking Dept: $4,500
Packing Dept: $1000
Depreciation Expenses:Baking Dept: $46,000
Packing Dept:$ 15,000
FOH Applied:Baking Dept:$86,700
Packing Dept: $30,345
Sales on Account:47,000 cases at $42 per case
July 31 WIPBaking Dept: WIP = 40% complete
Packing Dept: 5000 cases at 10% completion
Solution
Raw Material
OP-Bal
$235,000
Baking
$250,000
Purchase
$520,000
Packing
$50,000
Cl-Bal
$455,000
$755,000
$755,000
Baking Department
OP-Bal
NIL
Transfer to Packing
35,000
$446,634
Direct Material
50,000
$225,000
Direct Labor
$106,000
Indirect Material
$25,000
Cl-Bal (40%
Complete)
15,000
$76,566
Indirect Labor
$12,000
Misc. Expense
$18,000
Prepaid Expense
$4,500
Depreciation
$46,000
FOH applied
$86,700
50,000
$523,200
50,000
$523,200
Packing Department
OP-Bal (80% Complete)
6,000
$95,000
Transfer to finished
goods
36,000
$719,570
Transfer
35,000
$446,634
Direct Material
$40,250
Direct Labor
$60,000
Indirect Material
$9,750
Cl-Bal (10%
Complete)
5,000
$10,009
Indirect Labor
$17,000
Misc. Expense
$14,600
Prepaid Expense
$1,000
Depreciation
$15,000
FOH applied
$30,345
41,000
$729,579
41,000
$729,579
Finished Goods Inventory
OP-Bal (80%
Complete)
20,000
$300,000
Cost of goods
sold
47,000
$839,677
Transfer
36,000
$719,570
Cl-Bal
9,000
$179,892
56,000
$1,019,570
$1,019,570
Income Statement
Sales
47,000
$1,974,000
COGS
$839,677
Gross Profit
$1,134,323

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