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GLO301 - Based on Problem 03-1A LO P1, P2, P3, P4 Sweet 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 $101,000 233,500 Ending Inventory $122,500 61,000 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 155,500 46,250 253,300 210,100 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 $120,000 26,500 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 25,100 100,400 184,300 Factory Overhead (Actual costs) $ 72,000 58,800 66,000 Indirect materials used Indirect labor used Other overhead costs Factory overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) $1,016,000 Sales a. Record the purchase of materials (on credit). b. Record direct materials used in production. c. Record the usage of indirect materials. 3 d. Record the cost of direct labor incurred but not yet paid. (Use "Factory wages payable" account). e. Record the cost of indirect labor incurred but not yet paid. (Use "Factory wages payable" account). 5 f. Record the payment of the total factory payroll. g. Record the cost of other factory overhead costs (credit 2. g. Record the cost of other factory overhead costs (credit Other accounts). h. Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching). 8. i. Record the transferred costs of partially completed 9. goods. 10 j. Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab. k. Record the cost of goods sold, as calculated on the 11 cost of goods sold tab. 10 j. Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab. k. Record the cost of goods sold, as calculated on the cost of goods sold tab. 11 12 I. Record the sale of goods on account. Beginning Raw Materials Inventory Materials available for use Ending raw material inventory Beginning Raw Materials Inventory Materials available for use Ending raw material inventory Prepare a schedule of cost of goods manufactured for Sweet Company for the month of May. Dates: Apr 30 to: Apr 30 Total manufacturing costs added during May Total cost of work in process 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 Calculate cost of goods sold: Cost of goods available for sale Cost of goods sold Calculate the value of gross profit for the month of May. Dates: Apr 30 to: Apr 30 Gross Profit