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! Required information [ The following information applies to the questions displayed below. ] Sierra Company manufactures soccer balls in two sequential processes: Cutting and
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 of the cutting process. The following information is available regarding its May inventories. The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ Direct materials usedCutting Direct materials usedStitching Direct labor Direct laborCutting $ Direct laborStitching Factory Overhead Actual costs Indirect materials used $ Indirect labor used Other overhead costs Factory Overhead Rates Cutting of direct materials used Stitching of direct labor used Sales $ Required: 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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department. a Transferred to work in processStitching b Transferred to finished goods c Cost of goods sold....................PART : Prepare May journal entries to record the following May activities: Raw materials purchases Direct materials used Indirect materials used Direct labor used Indirect labor used Other overhead costs paid in cash Overhead applied Goods transferred from Cutting to Stitching Goods transferred from Stitching to finished goods Sales on account Cost of goods sold
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 of the cutting process. The following information is available regarding its May inventories.
The following additional information describes the company's production activities for May.
Direct materials
Raw materials purchased on credit $
Direct materials usedCutting
Direct materials usedStitching
Direct labor
Direct laborCutting $
Direct laborStitching
Factory Overhead Actual costs
Indirect materials used $
Indirect labor used
Other overhead costs
Factory Overhead Rates
Cutting of direct materials used
Stitching of direct labor used
Sales
$
Required:
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. Hint: Compute the total production costs in each department and then subtract the ending
inventory to get the amount transferred out of each department.
a Transferred to work in processStitching
b Transferred to finished goods
c Cost of goods sold....................PART : Prepare May journal entries to record the following May activities:
Raw materials purchases
Direct materials used
Indirect materials used
Direct labor used
Indirect labor used
Other overhead costs paid in cash
Overhead applied
Goods transferred from Cutting to Stitching
Goods transferred from Stitching to finished goods
Sales on account
Cost of goods sold
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