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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 Inventory | Ending Inventory | |
---|---|---|
Raw materials inventory | $ 66,000 | $ 79,450 |
Work in process inventoryCutting | 163,500 | 120,500 |
Work in process inventoryStitching | 183,300 | 97,700 |
Finished goods inventory | 44,100 | 32,250 |
The following additional information describes the company's production activities for May.
Direct materials | |
---|---|
Raw materials purchased on credit | $ 85,000 |
Direct materials usedCutting | 24,750 |
Direct materials usedStitching | 0 |
Direct labor | |
---|---|
Direct laborCutting | $ 21,600 |
Direct laborStitching | 86,400 |
Factory Overhead (Actual costs) | |
---|---|
Indirect materials used | $ 46,800 |
Indirect labor used | 57,400 |
Other overhead costs | 59,000 |
Factory Overhead Rates | |
---|---|
Cutting | 150% of direct materials used |
Stitching | 120% of direct labor used |
Sales | $ 736,000 |
Problem 20-5A (Algo) Part 2
2. Prepare May 31 journal entries to record the following May activities:
- Raw materials purchases
- Direct materials used
- Indirect materials used
- Direct labor used
- Indirect labor used
- Other overhead costs paid in cash
- Overhead applied
- Goods transferred from Cutting to Stitching
- Goods transferred from Stitching to finished goods
- Sales (on account)
- Cost of goods sold
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Step: 1
Lets prepare the journal entries for each of the listed May activities for Sierra Company 1 Raw Materials Purchases When raw materials are purchased o...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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