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Fisher 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 Inventory			Ending Inventory
Raw materials inventory	$	151,000		$	184,000
Work in process inventoryCutting		333,500			66,000
Work in process inventoryStitching		353,300			205,500
Finished goods inventory		310,100			66,250

The following additional information describes the company's production activities for May.

Direct materials
Raw materials purchased on credit	$	170,000
Direct materials usedCutting		29,000
Direct materials usedStitching		0

Direct labor
Direct laborCutting	$	30,100
Direct laborStitching		120,400
Total factory payroll paid (in cash)		211,300

Factory Overhead (Actual costs)
Indirect materials used	$	108,000
Indirect labor used		60,800
Other overhead costs		76,000

Factory Overhead Rates
Cutting	(150% of direct materials used			)
Stitching	(120% of direct labor used			)
Sales	$1,516,000

Journal entry worksheet

.....

• a. Record the purchase of materials (on credit).

Note: Enter debits before credits.

	Date Account Title Debit Credit May 31 Raw materials inventory 170,000 Accounts payable 170,000

• a. Record the purchase of materials (on credit).

Note: Enter debits before credits.

	Date Account Title Debit Credit May 31 Raw materials inventory 170,000 Accounts payable 170,000

Prepare a schedule of cost of goods manufactured for Fisher Company for the month of May.

Dates: Apr 30to:Apr 30

	Total manufacturing costs added during May Total cost of work in process

Prepare a schedule of cost of goods manufactured for Fisher Company for the month of May.

Dates: Apr 30 to: Apr 30

	Total manufacturing costs added during May Total cost of work in process

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

Calculate the value of gross profit for the month of May.

UnadjustedAdjustedPost-closing

Dates:

Apr 30

to:

Apr 30

	Gross Profit $0

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