1. Record purchase of raw materials.

2. Record direct materials used in production.

3. Record indirect materials used in production.

4. Record direct labor cost incurred, but not yet paid.

5. Record indirect labor cost incurred, but not yet paid.

6. Record payment of total factory payroll.

7. Record other overhead costs incurred (credit Other accounts).

8. Record overhead applied at 120% of direct labor cost.

9. Record the transfer of completed products from production to finished goods inventory.

10. Record the sale of finished goods.

11. Record cost of goods sold for May.

Problem 20-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories Beginning Inventory Ending Inventory Raw materials inventory Work in process inventory Finished goods inventory S 66,000 S 98,000 595,000 546,000 440,500 634,000 The following additional information describes the company's production activities for May Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) 280,000 1,545,000 101,000 S Materials used Direct S 178,000 70,000 Indirect Labor used Direct S 780,000 Indirect 765,000 Overhead rate as a percent of direct labor 1208 Sales (on credit) 2,500,000 computed at the beginning of the year as 120% of direct labor cost The predetermined overhead rate was Problem 20-1A Part 1 Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold. Raw Materials (RM) Work in Process (WIP) Finished Goods (FG) Factory Wages Payable Factory Overhead Income Statement (Partial) Cost of goods transfered Costs of goods sold Problem 20-1A Part 2 2. Prepare summary journal 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, (h) overhead applied, () goods transferred from production to finished goods, and ( sale of finished goods