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. Ending Inventory $ 97,900 135, 500 107,000 38, 250 The following additional Information describes the company's production activities for May. 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 Factory Overhead Rates. Cutting Stitching Sales $ 23, 100 92, 400 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold Beginning Inventory $ 81,000 193, 500 213, 300 50, 100 $ 100,000 25, 500 0 $ 57,600 58,000 62,000 150% of direct materials used 120% of direct labor used. $ 856,000 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. Ending Inventory $ 97,900 135, 500 107,000 38, 250 The following additional Information describes the company's production activities for May. 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 Factory Overhead Rates. Cutting Stitching Sales $ 23, 100 92, 400 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold Beginning Inventory $ 81,000 193, 500 213, 300 50, 100 $ 100,000 25, 500 0 $ 57,600 58,000 62,000 150% of direct materials used 120% of direct labor used. $ 856,000 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.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 13P: Webster Company uses backflush costing to account for its manufacturing costs. The trigger points...
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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.
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
Beginning
Inventory
$ 81,000
$ 23, 100
92, 400
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
193, 500
213, 300
50, 100
$ 100,000
25, 500
0
Ending
Inventory
$ 97,900
135, 500
107,000
38, 250
$ 57,600
58,000
62,000
150% of direct materials used
120% of direct labor used
$ 856,000
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.
5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F756650b3-18d1-4b86-ac9b-c71ad5c7bd76%2F9b3483fe-a263-42ef-b1f7-a1c69f227346%2Fz4th63_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.
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
Beginning
Inventory
$ 81,000
$ 23, 100
92, 400
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
193, 500
213, 300
50, 100
$ 100,000
25, 500
0
Ending
Inventory
$ 97,900
135, 500
107,000
38, 250
$ 57,600
58,000
62,000
150% of direct materials used
120% of direct labor used
$ 856,000
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.
5
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