GL1601 - Based on Problem 16-5A (Algo) LO P3, P4 Byrnes 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 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 56,000 $ 51,000 $ 61,000 133,500 153,300 110,100 105,500 26,250 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 Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching $ 70,000 24,000 0 $ 20,100 80,400 $ 36,000 56,800 56,000 (150% of direct materials used) (120% of direct labor used) Sales $ 616,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Gross Profit Goods Sold Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet 2 3 Record the purchase of materials (on credit). Note: Enter debits before credits. 6 7 8 11 Date May 31 Account Title Debit Credit Raw materials inventory 70,000 Accounts payable 70,000 Record entry Clear entry View general journal < Requirement General Ledger > 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 Verify the ending balance in raw materials inventory. Materials used should be indicated with a minus sign. Beginning Raw Materials Inventory Materials available for use Ending raw material inventory < Trial Balance 0 Cost of Goods Mfg Cutting > General Requirement 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 Cutting Department for the month of May. Total manufacturing costs added during May Total cost of work in process Dates: Apr 30 < Raw Materials Cost of Goods Mfg Stitching > to: Apr 30 General Requirement 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. Total manufacturing costs added during May Total cost of work in process Dates: Apr 30 < Cost of Goods Mfg Cutting Cost of Goods Sold > to: Apr 30 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. Calculate cost of goods sold: Cost of goods available for sale Dates: Apr 30 to: Apr 30 Cost of goods sold < Cost of Goods Mfg Stitching Gross Profit > 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. Gross Profit Dates: Apr 30 to: Apr 30 $ 0 < Cost of Goods Sold Gross Profit