Prepare journal entries for the month of May's transactions.

• 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 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.

Walters 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 $ 26,000 83,500 103, 300 60, 100 Ending Inventory $ 30,250 53,500 80,500 16,250 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 $ 45,000 22,750 0 Direct labor Direct labor-Cutting Direct labor-stitching $ 17,600 70, 400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 18,000 55,800 51,000 Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) Sales $ 416,000 Walters Company Trial Balance April 30, 2018 Account Title Debit Credit $ 240,000 24,000 48,250 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 Retained earnings Total 103,300 60,100 106,250 45,000 9,000 260,200 38,000 32,000 287,700 626,900 S 626,900 $ Prepare a schedule of cost of goods manufactured for the Cutting Department for the month of May. Dates: Apr 30 to: Apr 30 Total manufacturing costs added during May Total cost of work in process Prepare a schedule of cost of goods manufactured for the Stitching Department for the month of May. Dates: Apr 30 to: Apr 30 Total manufacturing costs added during May Total cost of work in process Calculate the value of gross profit for the month of May. Dates: A Gross Profit $ 0 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. Dates: Apr 30 to: Apr 30 Calculate cost of goods sold: Cost of goods available for sale 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 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