nces Clark 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 Raw materials inventory Ending Inventory $ 91,750. 58,500 130,500 Work in process inventory-Cutting $ 76,000 183,500 203,300 Work in process inventory-Stitching Finished goods inventory 160,100 36,250 The following additional information describes the company's production activities for May. Direct materials. Raw materials purchased on credit $ 95,000 Direct materials used-Cutting 25,250 Direct materials used-Stitching 0 Direct labor Direct labor-Cutting $ 22,600 Direct labor-stitching 90,400 Factory Overhead (Actual costs); Indirect materials used $ 54,000 Indirect labor used other overhead costs 57,800 61,000 Factory Overhead Rates Cutting Stitching (150% of direct naterials used) (120% of direct labor used) Sales 816,000 1 6 points eBook Print References $ 816,000 Sales General General Trial Balance Raw Materials Requirement Journal Ledger Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet 3 4 5 6 7 Record the usage of indirect materials. Note: Enter debits before credits. Date Account Title May 31 Factory overhead Raw materials inventory Record entry Clear entry Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching 11 Credit View general Journal 8 ..... Debit Cost of Goods Sold Gross Profit References $ 816,000 Sales Cost of Cost of Cost of Goods Mfg General Journal Requirement General Ledger Gross Profit Raw Materials Trial Balance Goods Mfg Goods Sold Cutting Stitching 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 $ 0 References Cost of General: Requirement General Journal Gross Profit Raw Materials Trial Balance Cost of Goods Mfg Cutting Cost of Goods Sold Goods Mfg Stitching Ledger Prepare a schedule of cost of goods manufactured for the Cutting Department for the month of May. Dates: Apr 30 Total manufacturing costs added during May Total cost of work in process Cost of Goods Mfg Stitching >
$ 816,000 $ 816,000 Book Print C erences The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit Direct materials used-Cutting $ 95,000 25,250 0 Direct materials used-Stitching Direct labor Direct labor-Cutting $ 22,600 90,400 Direct labor-Stitching $ 54,000 Factory Overhead (Actual costs). Indirect materials used i Indirect labor used i Other overhead costs. 57,800 61,000 Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) Sales General General Requirement Trial Balance Journal Ledger Raw Materials Cost of Goods Mfg Cutting Calculate the value of gross profit for the month of May. Gross Profit
