41500 GO Problem 20-1A Production cost flow and measurement journal entries P1 P2 P3 P4 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 Ending Inventory ventory $ 6,000 $150 Work in process motory Cutting 51.500 Work in process inventory - Sunching 63.300 Fished goods inventory 20,100 8.250 The following additional information describes the company's production activities for May Direct Materials Factory Ovhed factul ca Rowmaterials purchased on credit $ 25,000 Indirect med $6.000 Directed-Cutting 21,750 Indirect labore 55.000 Deed missed Saching 0 Other the cours 47.000 Direct Labor Factory Overhead Rates Desbor-Cutting $ 15,600 *50of director Debor-Suching 62.400 Setching 1200 Tolectory payroll adinah 133.000 Sales $256.000 Required 1. Compute the amount of (a) production costs transferred from Cutting to Stitching. (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold Check (1) Cost of goods sold 5213,005 2. Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materials purchases. (b) direct materials usage. (c) indirect materials usage, (d) direct labor costs incurred. (e) indirect labor costs incurred, payment of factory payroll. (e) other overhead costs (credit Other Accounts). () overhead applied, co goods transferred from Cutting to Stitching.) poods transferred from Stitching to finished goods, (A) cost of goods sold, and (1) sales Problem 20-2A Weighted average: Cost per equivalent unit; costs assigned to products C2 C3 Victory Company uses weighted average process costing to account for its production costs. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. During November, the first process transferred 700,000 units of product to the second process. At the end of November, work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning work in process inventory had $420,000 of direct materials and $139,000 of conversion cost. The direct material cost added in November is $2,220,000, and the conversion cost added is $3.254.000. Beginning work in process consisted of 60,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 60,00 were from beginning work in process and 640,000 units were started and completed during the period, Required For the first process: 1. Determine the equivalent units of production with respect to (a) direct materials and (b) conversion 2. Compute both the direct material cost and the conversion cost per equivalent unit, Check (2) Conversion cost per equivalent unit, $4.50 3. Compute the direct material cost and the conversion cost assigned to (a) units completed and transferred out and (b) ending work in process inventory. (3) $783,000
