Required information (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 Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending Inventory Inventory $ 66,000 $ 73,000 421,000 595,000 619,000 524,000 The following additional information describes the company's production activities for May. $ 260,000 1,577,000 87,000 $ Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used Direct Indirect Labor used Direct Indirect Overhead rate as a percent of direct labor Sales (on credit) 179,000 74,000 $ 790,000 787,000 120% $4,500,000 The predetermined overhead rate was computed at the beginning of the year as 120% of direct labor cost. 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, (i) goods transferred from production to finished goods, and (i) sale of finished goods. Record purchase of raw materials. Note: Enter debits before credits. Date General Journal Debit Credit May 31 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT Record direct materials used in production. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record indirect materials used in production. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record direct labor cost incurred, but not yet paid. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record indirect labor cost incurred, but not yet paid. Note: Enter debits before credits. Date General Journal Debit Credit May 31. Record payment of total factory payroll. Note: Enter debits before credits. General Journal Debit Credit Date May 31 Record other overhead costs incurred (credit Other accounts). Note: Enter debits before credits. General Journal Debit Credit Date May 31 Record overhead applied at 120% of direct labor cost. Vote: Enter debits before credits. Date General Journal Debit Credit May 31 Record the transfer of completed products from production to finished goods inventory. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record the sale of finished goods. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record cost of goods sold for May. Note: Enter debits before credits. Date General Journal Debit Credit May 31
