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GL0301 - Based on Problem 03-1A LO P1, P2, P3, P4

Pelcher 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:

GLO301 Based on Problem 03-1A LO P1, P2, P3, P4 Pelcher 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 $106,000 Ending Inventory $128,650 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 243,500 263,300 220,100 61,500 160,500 48,250 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 $125,000 26,750 Direct labor $ 25,600 Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) 102,400 187,000 Factory Overhead (Actual costs) Indirect materials used 75,600 59,000 67,000 Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $1,056,000 Cost of Cost of Goods Mfg Stitching General Ledger General Cost of Raw Requirement Trial Balance Goods Mfg Cutting Goods Sold Gross Profit Journal Materials General Journal tab Prepare journal entries to record the transactions of Pelcher Company during the month of May. Cost of Materials Used tab Calculate the total cost of direct materials used in production during May. Cost of Goods Manufactured Cutting and Stitching tab Prepare a schedule of cost of goods manufactured for Pelcher Comnanr fnr thn manth nf M Sales $1,056,000 Cost of Cost of Goods Mfg Stitching General Journal General Cost of Raw Requirement Trial Balance Goods Mfg Cutting Materials Ledger Goods Sold Gross Profit Dates: Apr 30 to: Apr 30 General LedgerAccount Cash Accounts receivable No. Date Debit Credit Balance No. Date Debit Credit Balance 400,000 Apr 29 Apr 30 88,000 Raw materials inventory Work in process inventory-Stitching Credit Credit No. Date Debit Balance No. Date Debit Balance 106,000 Apr 29 263,300 Finished goods inventory Work in process inventory-Cutting Credit Debit No. Date Debit Balance No. Date Credit Balance Apr 29 220,100 243,500 Factory Equipment Accumulated depreciation - Factory equipment Balance No. Date Debit Credit Balance No. Date Debit Credit Apr 29 125,000 Apr 29 25,000 Accounts payable Common stock, $5 par value Credit Balance Date No. Date Debit No. Debit Credit Balance 70,000 Apr 30 980,000 Apr 29 Retained earnings Paid-in capital in excess of par - Common No. Date Debit Credit Balance No. Date Debit Credit Balance 64,000 Ap 30 Apr 30 306,900 Sales $1,056,000 Cost of Cost of Goods Mfg Stitching General General Cost of Raw Trial Balance Materials Requirement Goods Mfg Cutting Journal Ledger Goods Sold Gross Profit Dates: Apr 30 to: Apr 30 Pelcher Company Trial Balance April 30, 2018 Account Title Debit Credit Cash 400,000 Accounts receivable 88,000 Raw materials inventory 106,000 Work in process inventory-Stitching Finished goods inventory Work in process inventory-Cutting Factory Equipment Accumulated depreciation Factory equipment 263,300 220,100 243,500 125,000 25,000 Accounts payable 980,000 Common stock, $5 par value 70,000 Paid-in capital in excess of par Common 64,000 Retained earnings 306,900 Total 1,445,900 S 1,445,900 $ General Ledger Raw Materials Direct materials used-Cutting Direct materials used-Stitching 26,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) 25,600 102,400 187,000 Factory Overhead (Actual costs) Indirect materials used 75,600 59,000 67,000 Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) $1,056,000 Sales Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit General Journal General Raw Materials Trial Balance Requirement Ledger 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 0 Cost of Goods Mfg Cutting Direct materials used-Cutting Direct materials used-Stitching 26,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 25,600 102,400 187,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs 75,600 59,000 67,000 Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) $1,056,000 Sales Cost of Goods Mfg Cutting Cost of General General Raw Cost of Goods Mfg Stitching Trial Balance Requirement Journal Ledger Materials Goods Sold Gross Profit Prepare a schedule of cost of goods manufactured for Pelcher 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 Cutting Cost of Goods Sold> Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching $125,000 26,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) 25,600 102,400 187,000 Factory Overhead (Actual costs) Indirect materials used $ 75,600 Indirect labor used 59,000 67,000 Other overhead costs Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) Sales $1,056,000 Cost of Goods Mfg Stitching Cost of General Ledger General Journal Cost of Raw Trial Balance Requirement Goods Mfg Cutting Materials 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 Cost of Goods Mfg Stitching Gross Profit > Direct materiais Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching $125,000 26,750 Direct labor $ 25,600 Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) 102,400 187,000 Factory Overhead (Actual costs) Indirect materials used 75,600 59,000 Indirect labor used Other overhead costs 67,000 Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $1,056,000 Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching General General Raw Cost of Requirement Trial Balance Journal Materials Ledger Goods Sold Gross Profit Calculate the value of gross profit for the month of May. Dates: Apr 30 to: Apr 30 Gross Profit Gross Profit Cost of Goods Sold $125,000 Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching 26,750 Direct labor Direct labor-Cutting Direct labor-Stitching $ 25,600 102,400 187,000 Total factory payroll paid (in cash) Factory Overhead (Actual costs) Indirect materials used $ 75,600 Indirect labor used 59,000 67,000 Other overhead costs Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $1,056,000 Cost of Cost of Goods Mfg Stitching General Ledger General Cost of Raw Requirement Trial Balance Goods Mfg Cutting Materials Goods Sold Gross Profit Journal General Journal tab Prepare journal entries to record the transactions of Pelcher Company during the month of May. Cost of Materials Used tab Calculate the total cost of direct materials used in production Cost of Goods Manufactured Cutting and Stitching tab - Prepare a schedule of cost of goods manufactured for Pelcher Company for the month of May. Cost of Goods Sold tab Prepare a schedule of cost of goods sold for Pelcher Company for the month of May Gross Profit tab Calculate the gross profit on sales for May. lay. General Journal>

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