Stam 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: Raw materials inventory Work in process inventory-Cutting Beginning Inventory Ending Inventory $ 121,000 273,500 $ 147,100 63,000 Work in process inventory-Stitching Finished goods inventory 293,300 250,100 175,500 54,250 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 Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 140,000 27,500 $ 27,100 108,400 $ 86,400 59,600 70,000 (150% of direct materials used) (120% of direct labor used) $ 1,176,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Gross Profit General Journal tab - Journalize the transactions related to Stam Company's manufacturing of soccer balls. The General Ledger and Trial Balance will be updated based on your entries. Prepare journal entries to record the transactions of Stam Company during the month of May. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Raw Materials tab - Calculate the total cost of direct materials used in production during May. Cost of Goods Manufactured Cutting and Stitching tab - Prepare a schedule of cost of goods manufactured for Stam Company for the month of May. Cost of Goods Sold tab - Prepare a schedule of cost of goods sold for Stam Company for the month of May. Gross Profit tab - Calculate the gross profit on sales for May. Requirement General Journal General Ledger Raw Trial Balance Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Record the purchase of materials (on credit). Note: Enter debits before credits. Date May 31 Account Title Debit Credit Record entry Clear entry View general journal Factory Overhead Rates. Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $ 1,176,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Calculate the value of gross profit for the month of May. Gross Profit Dates: Apr 30 to: Apr 30