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: Beginning Inventory Ending Inventory Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory $ 6,000 $ 9,250 43,500 51,500 63,300 60,500 20,100 8,250 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 Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching $ 25,000 21,750 0 $ 15,600 62,400 $ 6,000 55,000 46,505 150% of direct materials used 120% of direct labor used Sales $ 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. (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold
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: Beginning Inventory Ending Inventory Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory $ 6,000 $ 9,250 43,500 51,500 63,300 60,500 20,100 8,250 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 Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching $ 25,000 21,750 0 $ 15,600 62,400 $ 6,000 55,000 46,505 150% of direct materials used 120% of direct labor used Sales $ 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. (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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:
Beginning
Inventory
Ending
Inventory
Raw materials inventory
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
$ 6,000
$ 9,250
43,500
51,500
63,300
60,500
20,100
8,250
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
Direct labor
Direct labor-Cutting
Direct labor-Stitching
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor used
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
$ 25,000
21,750
0
$ 15,600
62,400
$ 6,000
55,000
46,505
150% of direct materials used
120% of direct labor used
Sales
$ 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.
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8bcf4531-37e5-4a24-b08f-ebecbbe3756e%2F282fb007-df58-4d29-892f-1e4c606a433e%2Fmpshj3b_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:
Beginning
Inventory
Ending
Inventory
Raw materials inventory
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
$ 6,000
$ 9,250
43,500
51,500
63,300
60,500
20,100
8,250
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
Direct labor
Direct labor-Cutting
Direct labor-Stitching
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor used
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
$ 25,000
21,750
0
$ 15,600
62,400
$ 6,000
55,000
46,505
150% of direct materials used
120% of direct labor used
Sales
$ 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.
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
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