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 43,500 63,300 20,100 Ending Inventory 51,500 60,500 8,250 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 $ 25,000 21,750 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 15,600 62,400 133,000 Activa Direct labor Direct labor-Cutting Direct labor-stitching Total factory payroll paid (in cash) $ 15,600 62,400 133,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 47,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $256,000 Problem 20-1A Part 2 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchasesws Go to Settings to activata No Date General Journal Debit Credit 1 May 31 Raw materials inventory Accounts payable 110,000 X 2. May 31 26,000 Work in process inventory-Cutting Raw materials inventory 26,000 3 May 31 Factory overhead 64,800 Raw materials inventory 64,800 X 4. May 31 24,100 Work in process inventory-Cutting Work in process inventory_Stitching 96,400 5 May 31. Factory overhead 58,400 X 58,400 Factory wages payable 6 May 31 Factory wages payable 178,900 Cash 178,900 X 7 May 31 Factory overhead 64,000 X Other accounts 64,000 8 May 31 39,000 X Work in process inventory-Cutting Work in process inventory_Stitching 115,680 X 154,680 9 May 31 > 157,100 X Work in process inventory_Stitching Work in process inventoryCutting 157,100 10 May 31 489,280 X Finished goods inventory Work in process inventory_Stitching 489,280 X 11 May 31 Cost of goods sold Finished goods inventory 501,130 X 501,130 X 12 May 31 Accounts receivable 936,000 Sales 936,000 X