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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
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 83,500 88,500 Work in process inventory-stitching 103,300 72,908 Finished goods inventory 28,100 16,250 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 $ 45,000 22,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 17,600 70,400 143,800 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $18,000 55,800 51,000 Factory Overhead Rates Cutting (1504 of direct materials used) Stitching (120% of direct labor used) Sales $416,000 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. ( payment of factory payroll, (g) other overhead costs, (credit Other Accounts). (h) overhead applied. () goods transferred from Cutting to Stitching. U goods transferred from Stitching to finished goods, (k) cost of goods sold, and () sales. View transaction list Journal entry worksheet 1 2 5 6 7 8 12 Record purchase of raw materials. Note: Enter debits before credits General Journal Debit Credit Date May 31
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