Required Information 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: Work in process inventory-cutting Work in process inventory-stitching Finished goods inventory Beginning Inventory 213,5ee 233,300 54,100 Ending Inventory 145,500 113,200 42,250 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 $110,000 26, cee e Direct labor Direct labor-cutting Direct labor-stitching Total factory payroll paid (in cash) $ 24,100 96, 4ee 178,9ee Factory overhead (Actual costs) Indirect materials used Indirect labor used other overhead costs $ 64,see 58,480 64,000 Factory Overhead Rates Cutting (15ex of direct materials used) Stitching (120% of direct labor used) Sales $936,000 Problem 16-1A 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. (1) 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, ( cost of goods sold and (0 sales Factory Overhead Rates cutting (150% of direct materials used) stitching (120% of direct labor used) Sales $936,000 Problem 16-1A 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. (1) payment of factory payroll, (g) other overhead costs. (credit Other Accounts), (h) overhead applied. (0) goods transferred from Cutting to Sutching. goods transferred from Sutching to finished goods. (k) cost of goods sold, and (l) sales. View transaction list Journal entry worksheet Record purchase of raw materials. Note: Enter debits before credits General Journal Debit Credit Date May 31 Record entry Clear entry View general journal