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Problem 16-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Sierra
Problem 16-1A Production cost flow and measurement; journal entries LO P1, P2, 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: Beginning Ending Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Inventory Inventory 193,500 135,500 213,300 50,100 107,000 38,250 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 $100,000 25,500 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhead (Actual costs). Indirect materials used Indirect labor used Other overhead costs $ 57,600 58,000 62,000 Factory Overhead Rates Cutting Stitching Sales $ 23,100 92,400 173,500 (150% of direct materials used) (120% of direct labor used) $856,000
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