GLO301 - Based on Problem 3-5A (Algo) LO P3, P4 Callahan 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 $ 91,000 Ending Inventory $ 110,200 213,500 233,300 190,100 60,000 145,500 42,250 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 $ 110,000 26,000 0 $ 24,100 96,400 $ 64,800 58,400 64,000 (150% of direct materials used) (120% of direct labor used) Sales $ 936,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit