Sierra Company manufactures woven blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.

The following additional information describes the company’s production activities for May.

Required 1. Compute the cost of

(a) products transferred from production to finished goods, and

(b) goods sold.
2. Prepare summary journal entries dated May 31 to record the following production activities during May:

(a) raw materials purchases,

(b) direct materials usage,

(c) indirect materials usage,

(d) payroll costs,

(e) direct labor costs,

(f) indirect labor costs, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished good

Transcribed Image Text:

Raw materials inventory Goods in process inventory Finished goods inventory Beginning Ending Inventory Inventory $ 60,000 $ 92,500 435,000 515,000 633,000 605,000