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: Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory 133,500 105,500 153,300 88,400 38,100 26,250 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 $ 70,000 24,000 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 20,100 80,400 157,300 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 36,000 56,800 56,000 Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $616,000 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, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, 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, (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. Answer is complete but not entirely correct. No 1 Date May 31 General Journal Debit Credit Raw materials inventory 70,000 Accounts payable 70,000 2 May 31 Work in process inventory-Cutting Raw materials inventory 24,000( 24,000 3 3 May 31 Factory overhead Raw materials inventory 36,000 36,000 4 May 31 Work in process inventory-Cutting 20,100 Work in process inventory-Stitching 80,400 Factory wages payable 100,500 5 May 31. Factory overhead Factory wages payable 56,800 56,800 6 6 May 31 Factory wages payable Cash 157,300 157,300 7 May 31 Factory overhead Other accounts 8 May 31 9 May 31 10 May 31 = 11 May 31 12 May 31 Work in process inventory-Cutting Work in process inventory-Stitching Factory overhead Work in process inventory-Cutting Factory overhead Finished goods inventory Work in process inventory-Stitching Cost of goods sold Finished goods inventory Accounts receivable Sales 56,000 56,000 105,500 x 88,400 X 193,900 X 108,1000 108,1000 349,880 349,880 361,700 X 361,700 X 616,000 616,000