QUESTION 1 :

Required information [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 ofthe Cutting process. The following information is available regarding its May inventories: Beginning Ending Inventory Inventory Work in process inventoryCutting 43,500 51,500 Work in process inventoryStitching 63,300 60,500 Finished goods inventory 20,100 8,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $25,000 Direct materials usedCutting 21,750 Direct materials usedStitching 0 Direct labor Direct laborCutting $ 15,600 Direct labor-Stitching 62,400 Total factory payroll paid (in cash) 133,000 Factory Overhead (Actual costs) Indirect materials used $ 6,000 Indirect labor used 55,000 Other overhead costs 47,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $256,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Ignore any over- or under-applied overhead in the calculation of cost of goods sold. Requhedinfonnaon [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 Invento ry Invento ry Work in process inventoryCutting 43,500 51,500 Work in process inventoryStitching 63,300 60,500 Finished goods inventory 20,100 8,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $25,000 Direct materials used-Cutting 21,750 Direct materials used-Stitching 0 Direct labor Direct laborCutting $ 15,600 Direct labor-Stitching 62,400 Total factory payroll paid (in cash) 133,000 Factory Overhead (Actual costs) Indirect materials used $ 6,000 Indirect labor used 55,000 Other overhead costs 47,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $256, 000 J 2. Prepare summaryjournal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (I) sales. Fast Co. produces its product through two processing departments. Direct materials are added at the start of production in the Cutting department, and conversion costs are added evenly throughout each process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory-Cutting account has a balance of $84,300 as of October 1, which consists of $17,100 of direct materials and $67,200 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials $144,400 Conversion 862,400 At the beginning ofthe month, 30,000 units were in process. During October, the company started 140,000 units and transferred 150,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 20,000 units that were 80% complete with respect to conversion costs. Required: 1. Prepare the Cutting department's process cost summary for October using the weightedaverage method. 2. Prepare thejournal entry dated October 31 to transfer the cost of the partially completed units to Assembly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the Cutting department's process cost summary for October using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.) Total costs to account for: $ 0 Total costs accounted for Difference due to rounding cost/unit $ 0 Units to account for: Total units to account for Total units accounted for: Total units accounted for Total units + Equivalent units of production Cost per equivalent unit of production Cost of units transferred out: \" Cigager Total cost - = s doom Total cost of ending work in process Total costs accounted for