Question

Ch 03 GL P3-1a Saved 1 Fox Company manufactures soccer balls In two sequentlal processes: Cutting and Stitching. All direct materlals enter production at the beginning of the Cutting process. The following Information Is avallable regarding Its May Inventorles: Beginning Ending Inventory $104, 050 59, 500 15 Inventory points Raw materials inventory ork in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory $ 86, 000 203, 500 223, 300 180, 100 140, 500 40, 250 еВook The following additional Information describes the company's production activitles for May. Print Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching $105, 000 25, 750 0 References Direct labor 23, 600 94, 400 176, 200 Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhe ad (Actual costs) Indirect materials used $61, 200 Indirect labor used 58, 200 Other overhead costs 63, 000 Factory Overhead Rates Cutting Stitching (150% of direct materials used) (120% of direct labor used) $896, 000 Sales Cost of Cost of General Ledger Cost of General Journal Trial Raw Gross Requirem... Materials Goods Mfg Goods Mfg Goods Sold Balance Profit Cutting Stitchinn General Journal tab - Prepare journal entries to record the transactions of Fox Company during the month of May Cost of Materials Used tab - Calculate the total cost of direct materials used in production during May. Cost of Goods Manufactured Cutting and Stitching tab - Prepare a schedule of cost of goods manufactured for Fox Company for the month of May. Cost of Goods Sold tab Prepare a schedule of cost of goods sold for Fox Company for the month of May Gross Profit tab Calculate the gross profit on sales for May.

Answer 1

86,000 ار Raw materials Beginning Inventory Raw material Purchased 105,000 Materials available for use 191,000 uscabulaini wto start . Less: Raw materials us Cutting (25,75) hees: Indirect marcials used (61 200) Ending Inventory En Last 104,050

Cost of goods manufacturing letting Direct matcual sud se 25750 ہے ایک پرانا را از Z Ricrect labour ne 23,600 ardust stets biblo g. factory overheals to [25750x150 % | 38,625 during may ا ور باری الز پر lood manufacturing cost added 87,975 during an (ooo Add: Opening will b e 203,500 hees: Closing wil 659500) Toral est of Wil Transferred 231,975 to stitching

Cost of goods manufactured Stitching Toronsferred from cutting 231,945 1) Riorect labour worlar hari 94,400 Factory overhead [94,400 x 120%] 113,280 Toral manufacturing lost added 439,655 during may Aad Opening wil be 223,300 Less: closing wil sho (140,500) total cost of wil paisal 922455 S224 of a

Cost of goods sold & i & Cost of goods manufactund 522,455 Indirect materials th at 61,200 Indirect labour valsts 58,200 other ovated costs com lots 63,000 opening finished goods 180,00 Cost of goods available for 884,955 so Less: Closing finished goodle Cost of goode sold (40,250) 844 705

Groes Profit Sales 896,000 Less: sold 844, Tos Cost of Gross goods Profit 51, 295