Sierra company

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 $ 6,000 Ending Inventory. $ 9,250 51,500 Raw materials inventory Work in process inventory-Cutting 43,500 Work in process inventory-Stitching 63,300 60,500 Finished goods inventory 20,100 8,250 The following additional information describes the company's production activities for May. Direct materials $ 25,000 Raw materials purchased on credit Direct materials used-Cutting 21,750 Direct materials used-Stitching Direct labor Direct labor-Cutting Direct labor-Stitching $ 15,600 62,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 46,505 Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) Sales $ 256,000 Raw Materials Verify the ending balance in raw materials inventory. Materials used should be indicated with a minus sign. Beginning Raw Materials Inventory $ 6,000 Materials available for use Ending raw material inventory $ Cost of Goods Sold Calculate the value of cost of goods sold for the month of May. Ignore any over- or underapplied overhead in the calculation of cost of goods sold. Dates: Apr 30 to: Apr 30 Calculate cost of goods sold: Beginning finished goods inventory Cost of goods manufactured $ 20,100 202,055 Cost of goods available for sale 222,155 8,250 Ending finished goods inventory Cost of goods sold $ 213,905 Cost of Goods Mfg Stitching Prepare a schedule of cost of goods manufactured for the Stitching Department for the month of May. Dates: Apr 30 to: Apr 30 $ 61,975 Transferred-in from Cutting Direct materials used Direct labor used 62,400 Factory overhead applied 74,880 Total manufacturing costs added during May Add: Beginning work in process inventory Total cost of work in process Less: Ending work in process inventory Cost of goods manufactured Cost of Goods Mfg Cutting Prepare a schedule of cost of goods manufactured for the Cutting Deparument for the month of May. Dates: Apr 30 to: Apr 30 Direct materials used $ 21,750 Total manufacturing costs added during May Add: Beginning work in process inventory Total cost of work in process Less: Ending work in process inventory Cost of goods manufactured Raw Materials $ $ 21,750 43,500 65,250 51,500 13,750 Cost of Goods Mfg Stitching >