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Strods 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 $ 81,000 193,500 213,300 170,100 Ending Inventory $ 97,900 59,000 135,500 38,250 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 $ 100,000 25,500 @ Direct labor Direct labor-Cutting Direct labor-Stitching $ 23, 100 92,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 57,600 58,000 62,000 Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) Sales $ 856,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Cost of Goods Sold Gross Profit Stitching Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet Record the transferred costs of partially completed goods. Note: Enter debits before credits. Debit Credit Date Account Title May 31 Finished goods inventory Factory overhead Record entry Clear entry View general journal Cost of Cost of General General Raw Cost of Requirement Trial Balance Goods Mfg Goods Mfg Gross Profit Journal Ledger Materials Goods Sold Cutting Stitching Verify the ending balance in raw materials inventory. Materials used should be indicated with a minus sign. $ Beginning Raw Materials Inventory Raw materials purchased Materials available for use 81,000 100,000 181,000 (25,500) (57,600) 97,900 Direct materials used Indirect materials used Ending raw material inventory $ Cost of Cost of General General Raw Cost of Requirement Trial Balance Goods Mfg Journal Goods Mfg Gross Profit Ledger Materials Goods Sold Cutting Stitching Prepare a schedule of cost of goods manufactured for the Cutting Department for the month of May. Dates: Apr 30 to: Apr 30 $ 25,500 23,100 92,400 149,130 Direct materials used Direct labor used Direct labor used Factory overhead applied Total manufacturing costs added during May Add: Beginning work in process inventory Total cost of work in process Less: Ending work in process inventory Cost of goods manufactured $ 290,130 406,800 696,930 (194,500) 502,430 $ Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Prepare a schedule of cost of goods manufactured for the Stitching Department for the month of May. Dates: Apr 30 to: Apr 30 Direct materials used $ Direct labor used 25,500 23,100 92,400 149,130 Direct labor used Factory overhead applied $ Total manufacturing costs added during May Add: Beginning work in process inventory Total cost of work in process Less: Ending work in process inventory Cost of goods manufactured 290,130 406,800 696,930 (194,500) 502,430 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Calculate the value of cost of goods sold for the month of May. Ignore any over- or underapplied overhead in the calculation of cost of goods sold. Dates: Apr 30 to: Apr 30 $ 502,430 170,100 Calculate cost of goods sold: Cost of goods manufactured Beginning finished goods inventory Cost of goods available for sale Ending finished goods inventory Cost of goods sold 672,530 (38,250) 634,280 $ Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Calculate the value of gross profit for the month of May. Dates: Apr 30 to: Apr 30 Gross Profit Sales $ Cost of goods sold Gross profit 856,000 (634,280) 221,720 $
