[The following information applies to the questions displayed below] Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching. All direct materiais 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 70,500 Work in process inventory-Stitching 66,700 Finished goods inventory 12,250 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 $ 16,600 66,400 Beginning Inventory $ 16,000 Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 63,500 83,300 24,100 $ 35,000 22,250 0 Ending Inventory $17,950 $ 10,000 55,400 49,000 150% of direct materials used 120% of direct labor used $336,000 Required: Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to inished 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
[The following information applies to the questions displayed below] Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching. All direct materiais 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 70,500 Work in process inventory-Stitching 66,700 Finished goods inventory 12,250 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 $ 16,600 66,400 Beginning Inventory $ 16,000 Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 63,500 83,300 24,100 $ 35,000 22,250 0 Ending Inventory $17,950 $ 10,000 55,400 49,000 150% of direct materials used 120% of direct labor used $336,000 Required: Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to inished 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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![[The following information applies to the questions displayed below]
Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching All direct materiais 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
70,500
66,700
Finished goods inventory
12,250
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 i
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
$ 16,600
66,400
Beginning
Inventory
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 16,000
63,500
63,300
24,100
$ 35,000
22,250
0
Ending
Inventory
$ 17,950
$ 10,800
55,400
49,000
150% of direct materials used
120% of direct labor used
$.336,000
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%2F52e89c70-44b2-4fd1-a75c-c3f7cd1405c1%2Fee757217-d3b2-4f11-89e2-fe6df6092203%2Funx4svzj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below]
Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching All direct materiais 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
70,500
66,700
Finished goods inventory
12,250
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 i
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
$ 16,600
66,400
Beginning
Inventory
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 16,000
63,500
63,300
24,100
$ 35,000
22,250
0
Ending
Inventory
$ 17,950
$ 10,800
55,400
49,000
150% of direct materials used
120% of direct labor used
$.336,000
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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