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 Beginning Inventory $6,000 43,500 63,300 20,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 25,000 21,750 0 $ 15,600 62,400 Ending Inventory $9,250 51,500 $ 6,000 55,000 46,505 60,500 8,250 150% of direct materials used 120% of direct labor used $ 256,000 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.
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 Beginning Inventory $6,000 43,500 63,300 20,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 25,000 21,750 0 $ 15,600 62,400 Ending Inventory $9,250 51,500 $ 6,000 55,000 46,505 60,500 8,250 150% of direct materials used 120% of direct labor used $ 256,000 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
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Transcribed Image Text:2.Prepare May 31 Journal entries to record the following May activities:
a. Raw materials purchases
b. Direct materials used
c. Indirect materials used
d. Direct labor used
e. Indirect labor used
f. Other overhead costs paid in cash
g. Overhead applied
h. Goods transferred from Cutting to Stitching
1. Goods transferred from Stitching to finished goods
J. Sales (on account)
k. Cost of goods sold
View transaction list
Journal entry worksheet
2 3
<
1
Record purchase of raw materials.
Note: Enter debits before credits.
Date
May 31
4
Record entry
5
General Journal
Clear entry
m
7
8
*****
Debit
11
Credit
View general Journal
![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
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor used
Other overhead costs
60,500
8,250
The following additional information describes the company's production activities for May.
Factory Overhead Rates
Cutting
Stitching
Sales
Beginning
Inventory
$ 6,000
43,500
63,300
20,100
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 25,000
21,750
$ 15,600
62,400
Ending
Inventory
$ 6,000
55,000
46,505
$ 9,250
51,500
150% of direct materials used
120% of direct labor used
$ 256,000
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%2F2da59b79-efcb-4504-a5e9-dff0d8563be1%2F0e037652-b15f-448f-8b0f-4a7acfaf488e%2F91657yj_processed.png&w=3840&q=75)
Transcribed Image Text: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
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor used
Other overhead costs
60,500
8,250
The following additional information describes the company's production activities for May.
Factory Overhead Rates
Cutting
Stitching
Sales
Beginning
Inventory
$ 6,000
43,500
63,300
20,100
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 25,000
21,750
$ 15,600
62,400
Ending
Inventory
$ 6,000
55,000
46,505
$ 9,250
51,500
150% of direct materials used
120% of direct labor used
$ 256,000
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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