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Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $336,000 Problem 20 - 5A (Algo) Part 1 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. Problem 20 - 5A (Algo) Production cost flow and measurement; journal entries LO P3, P4 Skip to question [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. Beginning Inventory Ending Inventory Raw materials inventory $16,000 $17,950 Work in process inventory-Cutting 63,500 70,500 Work in process inventory-Stitching 83,300 66,700 Finished goods inventory 24,100 12,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 35,000 Direct materials used-Cutting 22,250 Direct materials used-Stitching o Direct labor Direct labor-Cutting $ 16,600 Direct labor-Stitching 66,400 Factory Overhead (Actual costs) Indirect materials used $ 10,800 Indirect labor used 55,400 Other overhead costs 49,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used

Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $336,000 Problem 20 - 5A (Algo) Part 1 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. Problem 20 - 5A (Algo) Production cost flow and measurement; journal entries LO P3, P4 Skip to question [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. Beginning Inventory Ending Inventory Raw materials inventory $16,000 $17,950 Work in process inventory-Cutting 63,500 70,500 Work in process inventory-Stitching 83,300 66,700 Finished goods inventory 24,100 12,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 35,000 Direct materials used-Cutting 22,250 Direct materials used-Stitching o Direct labor Direct labor-Cutting $ 16,600 Direct labor-Stitching 66,400 Factory Overhead (Actual costs) Indirect materials used $ 10,800 Indirect labor used 55,400 Other overhead costs 49,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $336,000 Problem 20 - 5A (Algo) Part 1 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.
Transcribed Image Text:Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $336,000 Problem 20 - 5A (Algo) Part 1 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.
Problem 20 - 5A (Algo) Production cost flow and measurement; journal entries LO P3, P4 Skip to question [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. Beginning Inventory Ending Inventory Raw materials inventory $16,000 $17,950 Work in process inventory-Cutting 63,500 70,500 Work in process inventory-Stitching 83,300 66,700 Finished goods inventory 24,100 12,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 35,000 Direct materials used-Cutting 22,250 Direct materials used-Stitching o Direct labor Direct labor-Cutting $ 16,600 Direct labor-Stitching 66,400 Factory Overhead (Actual costs) Indirect materials used $ 10,800 Indirect labor used 55,400 Other overhead costs 49,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used
Transcribed Image Text:Problem 20 - 5A (Algo) Production cost flow and measurement; journal entries LO P3, P4 Skip to question [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. Beginning Inventory Ending Inventory Raw materials inventory $16,000 $17,950 Work in process inventory-Cutting 63,500 70,500 Work in process inventory-Stitching 83,300 66,700 Finished goods inventory 24,100 12,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 35,000 Direct materials used-Cutting 22,250 Direct materials used-Stitching o Direct labor Direct labor-Cutting $ 16,600 Direct labor-Stitching 66,400 Factory Overhead (Actual costs) Indirect materials used $ 10,800 Indirect labor used 55,400 Other overhead costs 49,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used
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