GLO301- Based on Problem 3-5A (Algo) LO P3, P4 Sanders 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 Ending Inventory $141,000 $171,700 313,500 65,000 333,300 195,500 290,100 62,250 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. $160,000 28,500 0 $ 29,100 116,400 $ 100,800 60,400 74,000 (1508 of direct materials used) (120% of direct labor used) Sales $ 1,396,000 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 Cost of Requirement General Journal General Ledger Raw Trial Balance Materials Goods Mfg Cutting Cost of Goods Mfg Stitching Prepare journal entries for the month of May's transactions. nsaction list Journal entry worksheet 1 2 3 4 5 6 7 8. 11 Record the purchase of materials (on credit). Note: Enter debits before credits. Date May 31 Account Title Debit Credit Cost of Goods Sold View general journal Record entry Clear entry 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 Prepare journal entries for the month of May's transactions. View transaction list 1 Record the purchase of materials (on credit). 2 Record direct materials used in production. 3 Record the usage of indirect materials. 4 Record the cost of direct labor incurred but not yet paid. (Use "Factory wages payable" account). 5 Record the cost of indirect labor incurred but not yet paid. (Use "Factory wages payable" account). 6 Record overhead costs paid in cash. 7 Record the application of overhead at a rate of 150% of =journal entry has been entered Note : Record entry Clear entry 11 Credit View general journal View transaction list Saved 7 Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching). 8 Record the transferred costs of partially completed goods. 9 Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab. 10 Record the sale of goods on account. 11 Record the cost of goods sold, as calculated on the cost of goods sold tab. Note: journal entry has been entered Record entry Clear entry 11 O Credit View general journal www.g Dates: Apr 30 to: Apr 30 General Ledger Account Cash Accounts receivable No. Date Debit Credit Balance No. Apr 29 470,000 Date: Apr 30 Debit Credit Balance 116,000 No. Date Apr 29 No. Date Apr 29 Raw materials inventory Debit Work in process inventory-Stitching Debit Credit Balance No. Date 141,000 Finished goods inventory Debit Credit Balance 333,300 Work in process inventory-Cutting Credit Balance No. Date 290,100 Factory Equipment Debit Credit Balance 313,500 Accumulated depreciation Factory equipment No. Date Apr 29 Debit Credit Balance No. Date Debit Credit 160,000 Apr 29 Balance 32,000 Accounts payable Common stock, $5 par value No. Date Apr 30 Debit Credit Balance No. 1,314,600 Date Apr 29 Debit Credit Balance 84,000 Paid-in capital in excess of par - Common Retained earnings No. Date Apr 30 Debit Credit Balance No. 78,000 Date Apr 30 Debit Credit Balance 315,300 < General Journal Trial Balance > 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 Dates: Apr 30 to: Apr 30 Sanders Company Trial Balance April 30, 2018 Account Title Cash Accounts receivable Raw materials inventory Work in process inventory-Stitching Finished goods inventory Work in process inventory-Cutting Factory Equipment Accumulated depreciation Factory equipment Accounts payable Common stock, $5 par value Paid-in capital in excess of par - Common 444 Retained earnings Total Debit Credit $ 470,000 116,000 141,000 333,300 290,100 313,500 160,000 32,000 1,314,600 84,000 78,000 315,300 $ 1,823,900 $ 1,823,900 < General Ledger Raw Materials > Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs. Factory Overhead Rates Cutting Stitching Sales $ 100,800 60,400 74,000 (150% of direct materials used) (120% of direct labor used) $ 1,396,000 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 Requirement General Journal General Ledger Trial Balance Raw Materials F Cost of Goods Sold Gross Profit ea schedule of cost of goods manufactured for the Cutting Department for the month of May. Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching k 25 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 Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $ 1,396,000 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 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 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: ces Cost of goods available for sale Dates: Apr 30 to: Apr 30 Cost of goods sold 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