TB Problem Qu. 16-242 (Algo) Production cost flow and journal entries [The following information applies to the questions displayed below.] A company makes guitars in two processes. All direct materials enter production at the beginning of the Cutting process. Guitars are then transferred to the next process, which is Finishing. Information on May inventories follows. The following additional information describes the company's production activities for May. $67,980 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materials used c. Direct labor used d. Indirect materials used e. Indirect labor used f. Overhead applied g. Other overhead costs paid in cash h. Goods transferred from Cutting to Finishing i. Goods transferred from Finishing to finished goods j. Sales (on credit) k. Cost of goods sold