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Need help on 8,9,11 Problem 20-5A (Algo) Production cost flow and measurement; journal entries LO P3, P4 [The following information applies to the questions displayed
Need help on 8,9,11
Problem 20-5A (Algo) Production cost flow and measurement; journal entries LO P3, P4 [The following information applies to the questions displayed below.] Sierra 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. The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit \$55,000 Directmaterialsused-Cutting23,250 Direct materials used-Stitching 0 Direct labor c. Indirect materials used d. Direct labor used e. Indirect labor used f. Other overhead costs paid in cash g. Overhead applied h. Goods transferred from Cutting to Stitching i. Goods transferred from Stitching to finished goods j. Sales (on account) k. Cost of goods sold Direct labor-Cutting Direct labor-Stitching $18,600 74,400 Factory Overhead (Actual costs) Indirect materials used $25,200 Indirect labor used 56,200 Other overhead costs 53,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $496,000 Problem 20-5A (Algo) Part 2 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materials used Finished goods inventoryStep by Step Solution
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