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 Ending Inventory Inventory $121,000 $147,100 273,500 63,000 293,388 175,500 250,100 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 27,500 Direct labor Direct labor-cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 27, 100 108,400 195, 100 Factory Overhead (Actual costs) Indirect materials used $86,400 Indirect labor used 59,600 Other overhead costs 70,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $1,176,000 Trial Balance Materials General General Raw Cost of Cost of Requirement Goods Mfg Goods Mfg Cost of Journal Ledger Cutting Gross Pront Goods Sold Stitching General Journal tab. Prepare journal 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 Company for the month of May. 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 > uirement Raw General Journal General Ledger Trial Balance Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching GOC epare journal entries for the month of May's transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 12 > a. Record the purchase of materials (on credit Note: Enter debits before credits. Account Title Debit Credit Date May 31 Record entry Clear entry View general journal Co Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching . Good Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet d. Record the cost of direct labor incurred but not yet paid. (Use "Factory wages payable" account). Note: Enter debits before credits ences Date Account Title Debit Credit May 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Gross Pro Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet g. Record the cost of other factory overhead costs (credit Other accounts), Note: Enter debits before credits Date Account Title Debit Credit May 31 Record entry Clear entry View general Journal Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet h. Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching). Note: Enter debits before credits Date Account Title Debit Credit May 31 Record entry Clear entry View general journal General Journal Requirement General Ledger Trial Balance Cost of Cost of Cost of Goods Mfg Goods Mfg Raw Materials Cutting Stitching Goods Sold Gross Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet Cost of Goods Mfg Cutting - General Requirement Cost of General Cost of Trial Balance Raw Goods Mfg Goods Mfg Cost Journal Ledger Goods : Cutting Stitching Prepare a schedule of cost of goods manufactured for Stam Company for the month of Ma Materials Goods Mfg Goo Dates: Apr 30 ences Total manufacturing costs added during May Total cost of work in process Raw Materials Cost of Goods Mfg Stitching-> Cost of Goods Mfg Stitching General General Raw Requirement www Journal Trial Balance Ledger Ice Materials Goods Mfg Goods Mfg. Cutting Stitching Prepare a schedule of cost of goods manufactured for Stam Company for the month of Dates: Apr 30 Total manufacturing costs added during May Total cost of work in process Ledger Cost of Cost of General General Trial Bala Raw Requirement Goods Mfg Goods Mfg Journal Trial Balance Ledger Materials Cutting stitching IG Calculate the value of cost of goods sold for the month of May. Ignore any over- calculation of cost of goods sold. Dates: Apr 31 Calculate cost of goods sold: Cost of goods available for sale Cost of goods sold General Requirement General Journal Trial Balance Raw Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching ed9 Materials Calculate the value of gross profit for the month of May. Dates: Api Gross Profit nces