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Fisher Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The
Fisher 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:
Beginning Inventory | Ending Inventory | |||||
Raw materials inventory | $ | 151,000 | $ | 184,000 | ||
Work in process inventoryCutting | 333,500 | 66,000 | ||||
Work in process inventoryStitching | 353,300 | 205,500 | ||||
Finished goods inventory | 310,100 | 66,250 | ||||
The following additional information describes the company's production activities for May.
Direct materials | ||||||
Raw materials purchased on credit | $ | 170,000 | ||||
Direct materials usedCutting | 29,000 | |||||
Direct materials usedStitching | 0 | |||||
Direct labor | ||||||
Direct laborCutting | $ | 30,100 | ||||
Direct laborStitching | 120,400 | |||||
Total factory payroll paid (in cash) | 211,300 | |||||
Factory Overhead (Actual costs) | ||||||
Indirect materials used | $ | 108,000 | ||||
Indirect labor used | 60,800 | |||||
Other overhead costs | 76,000 | |||||
Factory Overhead Rates | |||||||
Cutting | (150% of direct materials used | ) | |||||
Stitching | (120% of direct labor used | ) | |||||
Sales | $1,516,000 | ||||||
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