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Required information Problem 03-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 (The following information applies to the questions displayed below.)

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Required information Problem 03-1A 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: Work in process inventory-Cutting Work in process inventory Stitching Finished goods inventory Beginning Ending Inventory Inventory 143,500 110,500 163,300 91,500 40,100 28,250 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 $ 75,000 24,250 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 20,600 82,400 160,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 39,600 57,000 57,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1208 of direct labor used) Sales $656,000 Problem 03-1A 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. ( payment of factory payroll, (g) other overhead costs. (credit Other Accounts), (h) overhead applied, goods transferred from Cutting to stitching.) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list View journal entry worksheet No General Journal Date May 31 Debit Credit 1 Raw materials inventory Accounts payable 75,000 75,000 2 May 31 Work in process inventory Cutting Raw materials inventory 24,250 24,250 3 May 31 Factory overhead Raw materials inventory 39,600 39,600 4 May 31 Work in process inventory-Cutting Work in process inventory Stitching Factory wages payable 20,600 82,400 103,000 5 May 31 Factory overhead Factory wages payable 57.000 57.000 6 May 31 Factory wages payable Cash 160,000 160,000 7 May 31 Factory overhead Other accounts 57.000 57.000 8 May 31 30,900 Work in process inventory-Cutting Work in process inventory Stitching Factory wages payable

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