es ! 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. Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Direct labor Direct labor-Cutting Direct labor-Stitching The following additional information describes the company's production activities for May. Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 17,600 70,400 Beginning Inventory $ 26,000 83,500 103,300 28,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 45,000 22,750 0 Ending Inventory $ 30,250 80,500 $ 18,000 55,800 51,000 72,900 16,250 150% of direct materials used 120% of direct labor used $ 416,000 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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department.
es ! 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. Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Direct labor Direct labor-Cutting Direct labor-Stitching The following additional information describes the company's production activities for May. Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 17,600 70,400 Beginning Inventory $ 26,000 83,500 103,300 28,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 45,000 22,750 0 Ending Inventory $ 30,250 80,500 $ 18,000 55,800 51,000 72,900 16,250 150% of direct materials used 120% of direct labor used $ 416,000 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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![es
!
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.
Raw materials inventory
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
Direct materials
Raw materials purchased on credit
Direct materials used-Cutting
Direct materials used-Stitching
Direct labor
Direct labor-Cutting
Direct labor-Stitching
The following additional information describes the company's production activities for May.
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor used
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
$ 17,600
70,400
Beginning
Inventory
$ 26,000
83,500
103,300
28,100
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 45,000
22,750
0
Ending
Inventory
$ 30,250
80,500
$ 18,000
55,800
51,000
72,900
16,250
150% of direct materials used
120% of direct labor used
$ 416,000
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. Hint: Compute the total production costs in each department and then subtract the ending
inventory to get the amount transferred out of each department.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28a93edb-bf40-44aa-a1c9-d4287474fd41%2Fbd8a343c-607c-4a46-af45-493f797d42cc%2Fmb3p8y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
!
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.
Raw materials inventory
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
Direct materials
Raw materials purchased on credit
Direct materials used-Cutting
Direct materials used-Stitching
Direct labor
Direct labor-Cutting
Direct labor-Stitching
The following additional information describes the company's production activities for May.
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor used
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
$ 17,600
70,400
Beginning
Inventory
$ 26,000
83,500
103,300
28,100
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 45,000
22,750
0
Ending
Inventory
$ 30,250
80,500
$ 18,000
55,800
51,000
72,900
16,250
150% of direct materials used
120% of direct labor used
$ 416,000
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. Hint: Compute the total production costs in each department and then subtract the ending
inventory to get the amount transferred out of each department.
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