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: Raw materials inventory Work in process inventory-Cutting Ending Inventory Beginning Inventory $ 6,000 $ 9,250 43,500 51,500 63,300 60,500 20,100 8,250 Work in process inventory-Stitching Finished goods inventory 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 Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 25,000 21,750 0 $ 15,600 62,400 $ 6,000 55,000 46,505 Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) Sales $ 256,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Gross Profit General Journal tab - Journalize the transactions related to Sierra Company's manufacturing of soccer balls. The General Ledger and Trial Balance will be updated based on your entries. Prepare journal entries to record the transactions of Sierra Company during the month of May. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Raw Materials tab - Calculate the total cost of direct materials used in production during May. Cost of Goods Manufactured Cutting and Stitching tab - Prepare a schedule of cost of goods manufactured for Sierra Company for the month of May. Cost of Goods Sold tab - Prepare a schedule of cost of goods sold for Sierra Company for the month of May. Gross Profit tab - Calculate the gross profit on sales for May. Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Cost of Goods Sold Gross Profit Stitching Dates: April 30 to: April 30 General Ledger Account Cash Accounts receivable No. Date April 30 Debit Credit Balance No. 200,000 Date April 30 Debit Credit Balance 8,000 No. Date April 29 No. Date April 29 Raw materials inventory Debit Work in process inventory-Stitching Credit Balance No. Date 6,000 Finished goods inventory Debit Debit Credit Balance 63,300 Work in process inventory-Cutting Credit Balance No. Date 20,100 Factory Equipment No. Date Debit April 29 Debit Credit Balance 43,500 Accumulated depreciation - Factory equipment Credit Balance No. Date Debit 25,000 April 29 Credit Balance 5,000 No. Date April 29 Accounts payable Debit Common stock, $5 par value Credit Balance No. 75,500 Date April 29 Debit Credit Balance 30,000 Paid-in capital in excess of par - Common Retained earnings No. Date April 30 Debit Credit Balance No. 24,000 Date April 29 Debit Credit Balance 231,400 < General Journal Trial Balance >