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 Work in process inventoryCutting 183,500 130,500 Work in process inventoryStitching 203,300 103,900 Finished goods inventory 48,100 36,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 95,000 Direct materials usedCutting 25,250 Direct materials usedStitching 0 Direct labor Direct laborCutting $ 22,600 Direct laborStitching 90,400 Total factory payroll paid (in cash) 170,800 Factory Overhead (Actual costs) Indirect materials used $ 54,000 Indirect labor used 57,800 Other overhead costs 61,000 Factory Overhead Rates Cutting (150% of direct materials used ) Stitching (120% of direct labor used ) Sales $816,000 rev: 01_28_2020_QC_CS-197408

Problem 20-1A Part 2 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, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (l) sales.