60.1K

Verified Solution

Link Copied!

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 Ending Inventory Inventory 243,500 160,500 263,300 122,500 60,100 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 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 25,600 102,400 187,000 osts) Factory Ov ead (Actual Indirect materials used Indirect labor used Other overhead costs $ 75,600 59,000 67,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $1,056,000 2. 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, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (1) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list Journal entry worksheet Record purchase of raw materials. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet IIII. 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 IIII 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 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching). Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet Record the transferred costs of partially completed goods. 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 cost of goods sold for May. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer