• 1

  a. Record the purchase of materials (on credit).

• 2

  b. Record direct materials used in production.

• 3

  c. Record the usage of indirect materials.

• 4

  d. Record the cost of direct labor incurred but not yet paid. (Use "Factory wages payable" account).

• 5

  e. Record the cost of indirect labor incurred but not yet paid. (Use "Factory wages payable" account).

• 6

  f. Record the payment of the total factory payroll.

• 7

  g. Record the cost of other factory overhead costs (credit Other accounts).

• 8

  h. Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching).

• 9

  i. Record the transferred costs of partially completed goods.

• 10

  j. Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab.

• 11

  k. Record the cost of goods sold, as calculated on the cost of goods sold tab.

• 12

  l. Record the sale of goods on account.

Jones Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter pro the beginning of the Cutting process. The following information is available regarding its May inventories: Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory $ 16,000 63,500 83,300 40,100 Ending Inventory $17,950 52,500 70,500 12,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching $ 35,000 22,250 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,600 66,400 138, 400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 10,800 55,400 49,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $336,000