80.2K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below] 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: Work in process inventory-Cutting Work in process inventory-stitching Finished goods inventory Beginning Inventory 93,500 113,300 30,100 Ending Inventory 85,500 75,000 18,250 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 $ 50,000 23,000 Direct labor Direct labor-Cutting Direct labor-stitching Total factory payroll paid (in cash) $ 18, 100 72,400 146,500 Factory Overhead (Actual costs) Indirect materials used $ 21, 500 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 $ 50,000 23,000 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 18, 100 72,400 146,500 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 21,600 56,000 52,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $456,000 Other accounts 52,000 8 May 31 Work in process inventory Cutting Work in process inventory Stitching Factory overhead 34,500 86,880 121,380 9 May 31 Work in process inventory_Stitching Work in process inventory_Cutting 10 May 31 Finished goods inventory Work in process inventory Stitching 11 May 31 Cost of goods sold Finished goods inventory 12 May 31 Accounts receivable 456.000 Sales 456,000 4 Vidy 31 VOIN IT procESS HVERULY uy Work in process inventory_Stitching Factory wages payable FO, TUU 72,400 90,500 5 May 31 Factory overhead Factory wages payable 56,000 56,000 6. May 31 Factory wages payable Cash 146,500 146,500 7 May 31 Factory overhead 52.000 Other accounts 52,000 8 May 31 Work in process inventory_Cutting Work in process inventory-Stitching Factory overhead 34,500 86,880 121 380 9 May 31 Work in process inventory Stitching Saved Help Required information No Date General Journal Debit Credit 1 May 31 50,000 Raw materials inventory Accounts payable 50,000 2 May 31 23,000 Work in process inventory-Cutting Raw materials inventory 23,000 3 May 31 21,600 Factory overhead Raw materials inventory 21,600 4 May 31 18.100 Work in process inventory-Cutting Work in process inventory-Stitching Factory wages payable 72.400 90,500 5 May 31 56.000 Factory overhead Factory wages payable 56.000 6 May 31 Factory wages payable 146.500 Required information 75,600 Work in Process (WIP) - Stitching C of GM - Cutting Direct labor - Stitching Overhead - Stitching 72,400 WIP - May 31 72,400 Finished Goods (FG) FG - April 30 FG - May 31 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Direct materials - Cutting Direct labor - Cutting Overhead - Cutting Work in Process (WIP) - Cutting 23,000 18,100 34.500 75,600 Work in Process (WIP) - Stitching C of GM - Cutting Direct labor - Stitching Overhead - Stitching 72.400 YTY WIP - May 31 72.400 Finished Goods (FG) FG - April 30

Answer & Explanation Solved by verified expert

See Answer