1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of 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) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (l) sales.

a) Record purchase of raw materials

b) Record direct materials used in production

c) Record indirect materials used in production

d) Record direct labor cost incurred, but not paid yet

e) Record indirect labor cost incurred, but not paid yet

f) Record payment of total factory payroll

g) Record other overhead cost incurred (credit other accounts)

h) Record overhead applied at 150% of direct materials costs (Cutting) and 120% of direct labor cost (stiching)

i) Record transferred costs of partially completed goods

j) Record the transfer of completed products from production to finished goods inventory

k) Record cost of goods sold in may

l) Record the sale of finished goods

Problem 20-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 The following information applies to the questions displayed below.) Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at 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 $21,000 73,500 93, 300 26,100 Ending Inventory $24,100 75,500 6 9,800 14.250 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 $ 40,000 22,500 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 17, 100 68,400 141,100 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 14,400 55,600 50,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1208 of direct labor used) Sales $376,000 Raw Materials (RM) Work in Process (WIP) - Stitching Factory Overhead Income Statement (Partial) Work in Process (WIP) - Cutting Factory Wages Payable Finished Goods (FG) Cost of goods transferred Cost of goods sold