GL1601 - Based on Problem 16-1A Sierra Company LO 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: Rav materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory $ 6,000 43,500 63,300 20,100 Ending Inventory $3,250 51.500 60.500 8,250 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 $ 25,000 21,750 Direet labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 15,600 62,400 133,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead cost $ 6,000 55,000 47.000 Factory Overhead Rates Cutting (1501 of direct materials used) Stitehing (1201 of direct labor used) Sales $256.000 Raw Cost of Requirement General Journal General Ledger Trial Balance Materials Cost of Cost of Goods Mfg Goods Mfa Cutting Stitching Goods Sold Gross Profit Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 12 a. Record the purchase of materials (on credit). Note: Enter debits before credits. Account Title Debit Credit Date May 31 Record entry Clear entry View general Journal Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 47,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1201 of direct labor used) Sales $256,000 Trial Balance Materials Cost of Cost of General General Raw Cost of Requirement Journal Goods Mfg Goods Mfg Goods Sold Gross Profit Ledger Cutting Stitching Verify the ending balance in raw materials inventory. Enter the amount of materials used as negative values. Beginning Raw Materials Inventory Materials available for use Ending raw material inventory $ Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs 6,000 55,000 47,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1201 of direct labor used) Sales $256,000 Gross Profit Cost of Cost of Cost of General General Raw Trial Balance Goods Mfg Goods Mfg Goods Sold Requirement Journal Ledger Materials Cutting Stitching Prepare a schedule of cost of goods manufactured for Sierra Company for the month of May. Dates: Apr 30 to: Apr 30 Total manufacturing costs added during May Total cost of work in process Cost of Goods Mfg Stitching Cost of Goods Sold Cost of Goods Mig Cutting Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 47,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1201 of direct labor used) Sales $256,000 Raw Requirement General General Cost of Cost of Journal Trial Balance Ledger Cost of Materials Goods Mfg Goods Mfg Cost of Cutting Stitching Goods Sold Gross Profit 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: Cost of goods available for sale Cost of goods sold $ 213,905 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 47,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1201 of direct labor used) Sales $256,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cost of Goods Mfg Cost of Cutting Stitching Goods Sold Gross Profit Calculate the value of gross profit for the month of May. Dates: Apr 30 t o: Apr 30 Gross Profit $ 256,000 (213,905)