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. Rav materials inventory Ending Inventory $ 54,850 100,500 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 85,300 24,250 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 $ 19,600 78,400 Sales Beginning Inventory $ 46,000 123,500 143,300 36,100 $ 65,000 23,750 0 $ 32,400 56,600 55,000 e. Indirect labor used f. Other overhead costs paid in cash g. Overhead applied h. Goods transferred from Cutting to Stitching i. Goods transferred from Stitching to finished goods j. Sales (on account) k. Cost of goods sold 150% of direct materials used 120 of direct labor used $ 576,000 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
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. Rav materials inventory Ending Inventory $ 54,850 100,500 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 85,300 24,250 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 $ 19,600 78,400 Sales Beginning Inventory $ 46,000 123,500 143,300 36,100 $ 65,000 23,750 0 $ 32,400 56,600 55,000 e. Indirect labor used f. Other overhead costs paid in cash g. Overhead applied h. Goods transferred from Cutting to Stitching i. Goods transferred from Stitching to finished goods j. Sales (on account) k. Cost of goods sold 150% of direct materials used 120 of direct labor used $ 576,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject:
![2
12
2:43
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
Ending
Inventory
$ 54,850
100,500
85,300
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
24,250
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
Sales
19,600
78,400
c. Indirect materials used
d. Direct labor used
j. Sales (on account)
k. Cost of goods sold
Beginning
Inventory
$ 46,000
123,500
143,300
36,100
$ 65,000
23,750
0
$ 32,400
56,600
55,000
2. Prepare May 31 journal entries to record the following May activities:
a. Raw materials purchases
b. Direct materials used
e. Indirect labor used
f. Other overhead costs paid in cash
g. Overhead applied
h. Goods transferred from Cutting to Stitching
i. Goods transferred from Stitching to finished goods
150% of direct materials used
120% of direct labor used
$ 576,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F7c379fcb-5e13-47ab-b280-766a9909e54c%2F4ffvq1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
12
2:43
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
Ending
Inventory
$ 54,850
100,500
85,300
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
24,250
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
Sales
19,600
78,400
c. Indirect materials used
d. Direct labor used
j. Sales (on account)
k. Cost of goods sold
Beginning
Inventory
$ 46,000
123,500
143,300
36,100
$ 65,000
23,750
0
$ 32,400
56,600
55,000
2. Prepare May 31 journal entries to record the following May activities:
a. Raw materials purchases
b. Direct materials used
e. Indirect labor used
f. Other overhead costs paid in cash
g. Overhead applied
h. Goods transferred from Cutting to Stitching
i. Goods transferred from Stitching to finished goods
150% of direct materials used
120% of direct labor used
$ 576,000
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