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. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory The following additional information describes the company's production activities for May. 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 Sales $ 18,100 72,400 Beginning Inventory $ 31,000 93,500 113,300 30,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 50,000 23,000 0 Ending Inventory $ 36,400 85,500 $ 21,600 56,000 52,000 76,000 18,250 150% of direct materials used 120 % of direct labor used $ 456,000 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. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory The following additional information describes the company's production activities for May. 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 Sales $ 18,100 72,400 Beginning Inventory $ 31,000 93,500 113,300 30,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 50,000 23,000 0 Ending Inventory $ 36,400 85,500 $ 21,600 56,000 52,000 76,000 18,250 150% of direct materials used 120 % of direct labor used $ 456,000 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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![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
$ 18,100
72,400
Beginning
Inventory
$ 31,000
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
93,500
113,300
30,100
$ 50,000
23,000
0
Ending
Inventory
$36,400
$ 21,600
56,000
52,000
85,500
76,000
18,250
150% of direct materials used
120% of direct labor used
$ 456,000
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%2F933c0c63-eb3d-4c0d-ad59-3bf2a496afd3%2F3e67f7df-25e4-4ebf-9b0a-3272ec5156c2%2Fa50ato_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
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
$ 18,100
72,400
Beginning
Inventory
$ 31,000
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
93,500
113,300
30,100
$ 50,000
23,000
0
Ending
Inventory
$36,400
$ 21,600
56,000
52,000
85,500
76,000
18,250
150% of direct materials used
120% of direct labor used
$ 456,000
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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