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[The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories

	Beginning Inventory			Ending Inventory
Raw materials inventory	$	65,000		$	77,000
Work in process inventory		441,500			555,000
Finished goods inventory		632,000			517,000

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

Raw materials purchases (on credit)	$	250,000
Factory wages cost (paid in cash)		1,562,000
Other overhead cost (Other Accounts credited)		38,000
Materials used
Direct	$	158,000
Indirect		80,000
Labor used
Direct	$	800,000
Indirect		762,000
Overhead rate as a percent of direct labor		110	%
Sales (on credit)	$	3,500,000

The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost.

Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.

Record purchase of raw materials.

Note: Enter debits before credits.

	Date General Journal Debit Credit May 31

Journal entry worksheet

.....

Record direct materials used in production.

Note: Enter debits before credits.

	Date General Journal Debit Credit May 31

Journal entry worksheet

.....

Record indirect materials used in production.

Note: Enter debits before credits.

Date General Journal Debit Credit May 31 Journal entry worksheet ..... Record direct labor cost incurred, but not yet paid. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet ..... Record indirect labor cost incurred, but not yet paid. Note: Enter debits before credits. Date General Journal Debit Credit May 31. Journal entry worksheet ..... Record payment of total factory payroll. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet ..... Record other overhead costs incurred (credit Other accounts). Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet ..... Record overhead applied at 110% of direct labor cost. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet ..... ..... Record the transfer of completed products from production to finished goods inventory. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet ..... Record the sale of finished goods. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet ..... Record cost of goods sold for May. Note: Enter debits before credits. Date General Journal Debit Credit May 31

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