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 53,500 65,500 73,300 63,600 22,100 10,250 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 $ 30,000 22,000 0 Direct labor Direct labor-cutting Direct labor-stitching Total factory payroll paid (in cash) $ 16,100 64,400 135,700 Factory Overhead (Actual conta) Indirect materials used Indirect labor used other overhead costs $ 7,200 55,200 48,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1208 of direct labor used) Sales $296,000 Required: 1. 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. 59,100 WIP - April 30 Direct materials - Cutting Direct labor - Cutting Overhead - Cutting WIP - May 31 Answer is complete but not entirely correct. Work in Process (WIP) - Cutting 53,500 C of GM - Cutting 22,000 16.100 33,000 65,500 > 210,480 WIP - April 30 Direct labor - Stitching Overhead - Stitching C of GM - Cutting WIP - May 31 Work In Process (WIP) - Stitching 73,300 C of GM - Stitching 64.400 59,100 77,280 63,600 >> FG - April 30 C of GM - Stitching Finished Goods (FG) 22,100 Cost of goods sold 210,480 > 222,330 FG - May 31 10,250 LHC FOUNTY WITHIUUUR OMHEJ I WIC Ye JUUS Muyou were 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: Beginning Ending Inventory Inventory Work in process inventory-Cutting 53,500 65,500 Work in process inventory-stitching 73,300 63,600 Finished goods inventory 22,100 10,250 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 $ 30,000 22,000 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,100 64,400 135,700 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 7,200 55,200 48,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (120% of direct labor used) Sales $296,000 Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 12 Record indirect materials used in production. Note: Enter debits before credits. Date General Journal Debit Credit May 31 39,600 Factory overhead Raw materials inventory 39,600 Record entry Clear entry View general Journal
