Smith 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 Raw materials inventory $ 11,000 $ 11,800 Work in process inventory-Cutting 53,500 52,000 Work in process inventory-Stitching 73,300 65,500 Finished goods inventory 30,100 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 $ 16,100 64,400 Factory Overhead (htul costa) Todirect materials used Indirect labor used Other overhead coats $ 7,200 55,200 40.000 Factory Ovechte Cutting stitching (1501 of direct materials used) (1205 of direct labor used) 296,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mo Cutting Cost of Goods Mo Suitching Cost of Goods Sold Gross Profit Prepare fournal entries for the month of Mav's transactions Record the purchase of materials (on credit). 2 Record direct materials used in production. 3 Record the usage of indirect materials. 4 Record the cost of direct labor incurred but not yet paid. (Use "Factory wages payable" account). 5 Record the cost of indirect labor incurred but not yet paid. (Use "Factory wages payable" account). 6 Record overhead costs paid in cash. Record the application of overhead at a rate of 150% of Note : journal entry has been entered Record entry 7 Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching). Record the transferred costs of partially completed goods. 9 Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab. 10 Record the sale of goods on account. 11 Record the cost of goods sold, as calculated on the cost of goods sold tab. Note : = journal entry has been entered