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 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory 133,500 153, 300 38,100 105,500 88,400 26,250 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 $ 70,000 24,000 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 20,100 80,400 157, 300 Factory Overhead (Actual costs) $ 36,000 56,800 56,000 Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) $616,000 Sales
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 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory 133,500 153, 300 38,100 105,500 88,400 26,250 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 $ 70,000 24,000 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 20,100 80,400 157, 300 Factory Overhead (Actual costs) $ 36,000 56,800 56,000 Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) $616,000 Sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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