Walters 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 Work in process inventory-stitching Finished goods inventory Beginning Ending Inventory Inventory $ 26,000 $30,250 83,500 53,500 103,300 80,500 60,100 16,250 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 $ 45,000 22,750 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 17,600 70,400 143,800 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 18,000 55,800 51,000 Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1208 of direct labor used) Sales $416,000 i. Record the transferred costs of partially completed goods. Note: Enter debits before credits. Debit Credit Date May 31 Account Title Work in process inventory-Stitching Work in process inventory-Cutting Record entry Clear entry View general journal j. Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab. Note: Enter debits before credits. Date Account Title May 31 Finished goods inventory Work in process inventoryStitching Debit Credit Record entry Clear entry View general journal k. Record the cost of goods sold, as calculated on the cost of goods sold tab. Debit Note: Enter debits before credits. Date Account Title May 31 Cost of goods sold Finished goods inventory Credit Record entry Clear entry View general journal General Cost of Cost of General Raw Cost of Requirement Journal Ledger Trial Balance Materials Goods Mfg Gross Profit Goods Mfg Goods Sold Cutting Stitching Verify the ending balance in raw materials inventory. Enter the amount of materials used as negative values. Beginning Raw Materials Inventory Raw materials purchased Materials available for use Transferred-in from Cutting Factory overhead applied Ending raw material inventory $ Cost of General Raw Cost of General Cost of Requirement Trial Balance Journal Ledger Gross Profit Materials Goods Mfg Goods Mfg Goods Sold Cutting Stitching Prepare a schedule of cost of goods manufactured for Walters Company for the month of May. Dates: Apr 30 to: Apr 30 Direct materials used Direct labor used Factory overhead applied Total manufacturing costs added during May Add: Beginning work in process inventory Total cost of work in process Less: Ending work in process inventory k. Record the cost of goods sold, as calculated on the cost of goods sold tab. Debit Note: Enter debits before credits. Date Account Title May 31 Cost of goods sold Finished goods inventory Credit Record entry Clear entry View general journal Cost of Goods Mfg Stitching Cost of Goods Sold General General Cost of Requirement Raw Trial Balance Journal Ledger Materials Goods Mfg Cutting Calculate the value of gross profit for the month of May. Gross Profit Dates: Apr 30 to: Apr 30 Gross Profit Sales Cost of goods sold Gross profit $
