Check GLO301 - Based on Problem 03-1A LO P1, P2, P3, P4 Stam 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 $121.000 273,500 293,300 250, 100 Ending Inventory $147,100 63,000 175,500 54,250 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 $140,000 22.500 0 Direct labor Direct labor-Cutting Direct labor-stitching Total factory payroll paid (in cash) $ 27,100 108,400 195,100 Prey 1 of 1 Next Help Total factory payroll paid (in cash) 195,100 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 86,400 59,600 70,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $1,176,000 Cost of General Raw General Requirement Cost of Cost of Journal Ledger Trial Balance Materials Goods Mfg Goods Mfg Goods Sold Gross Profit Cutting Stitching General Journal tab - Prepare joumal entries to record the transactions of Stam Company during the month of May. Cost of Materials Used tab - Calculate the total cost of direct materials used in production during May. Cost of Goods Manufactured Cutting and stitching tab - Prepare a schedule of cost of goods manufactured for Stam Cost of Goods Sold tab Prepare a schedule of cost of goods sold for Stam Company for the month of May. Gross Profit tab - Calculate the gross profit on sales for May. General Journal > 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 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). Note : = journal entry has been entered 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). 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. 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 I. Record the sale of goods on account. Note: journal entry has been entered No. Date Debit Credit Balance 430,000 No. Apr 29 Debit Date Apr 30 Credit Balance 100,000 Raw materials Inventory Debit Credit No. Date Apr 29 Balance 121,000 Work in process inventory-Stitching Date Debit Credit No. Balance 293,300 Finished goods inventory Debit Credit No. Date Work in process inventory-Cutting Date Debit Credit No. Balance 250.100 Apr 29 Balance 273,500 Factory Equipment Debit Credit No. Date Balance 140,000 No. Accumulated depreciation - Factory equipment Date Debit Credit Balance Apr 29 28.000 Apr 29 Accounts payable Debit Credit No. Date Apr 30 Common stock, $5 par value Debit Credit Balance 1.123.400 No. Date Apr 29 Balance 76.000 No. Paid in capital in excess of par - Common Date Debit Credit Balance 70.000 Retained earnings Debit Credit No. Apr 30 Date Apr 30 Balance 310.500 Dates: Apr 30 to: Apr 30 Star Company Trial Balance April 30, 2018 Credit $ Account Title Cash Accounts receivable Raw materials inventory Work in process inventory Stitching Finished goods inventory Work in process inventory-Cutting Factory Equipment Accumulated depreciation - Factory equipment Accounts payable Common stock. $5 par value Paid in capital in excess of par. Common Retained earnings Total Debit 430,000 100,000 121,000 293,300 250.100 273,500 140,000 28.000 1,123,400 76,000 70,000 310.500 1,607.900 1,607 900 General General Cost of Cost of Requirement Raw Trial Balance Journal Cost of Ledger Goods Mfg Goods Mfg Materials Goods Sold Gross Profit Cutting Stitching Verify the ending balance in raw materials inventory. Enter the amount of materials used as negative Beginning Raw Materials Inventory Materials available for use Ending raw material inventory Dates: Apr 30 to: Apr s Total manufacturing costs added during May Total cost of work in process of May. Dates: Apr 30 to: Apr 30 Total manufacturing costs added during May Total cost of work in process Cost of Goods Mig Cutting General General Cost of Requirement Raw Cost of Journal Trial Balance Cost of Ledger Materials Goods Mfg Goods Mfg Gross Profit Goods Sold Cutting Stitching 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 Calculate cost of goods sold: to: Apr 30 Cost of goods available for sale Cost of goods sold General General Cost of Raw Requirement Trial Balance Journal Goods Mfg Ledger Materials Cutting Calculate the value of gross profit for the month of May. Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Dates: Apr 30 to: Apr 30 Gross Profit