Question

#1 please do all parts

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: Part 1 of 2 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory $ 6,000 $ 9, 250 43,500 51,500 63,300 60,500 20,100 8,250 points The following additional information describes the company's production activities for May. eBook Print Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-stitching $ 25,000 21,750 References Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 15,600 62,400 133,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 47,000 Factory Overhead Rates Cutting (150% of direct materials used) Screenshot

Answer 1

Answer is given below

a) Production cost transferred from Cutting to Stitching Department $46,975 b) Product cost transferred from Stitching Department to Finished Goods $187,055 c) Cost of Goods Sold $198,905 $15,750 Opening Balance Purchases Raw Materials $6,000 Work in Process- Cutting $25,000 Work in Process-Stitching Factory Overheads Closing Balance $6,000 $9,250 $31,000 $31,000 Work-in-Process - Cutting $43,500 $15,750 WIP- Stitching $15,600 $23,625 Closing balance Opening Balance Direct Material Direct Labor Factory overheads (150% of Direct Material) $46,975 $51,500 $98,475 $98,475 Work-in-Process - Stitching $63,300 $46,975 $0 Finished Goods $62,400 $74,880 Closing balance Opening Balance WIP- Cutting Direct Material Direct Labor Factory overheads (120% of Direct Labor) $187,055 $60,500 $247,555 $247,555 Opening Balance Work in Process - Stitching Finished Goods $20,100 $187,055 Cost of Goods sold Closing balance $198,905 $3,250 $207,155 $207,155 Cash Account Raw Materials- Indirect Labor- Indirect Factory Overhead $47,000 Work in Process- Cutting $6,000 Work in Process-Stitching $55,000 cost of Goods sold $23,625 $74,880 $9,495 $108,000 $108,000 Income Statement Sales Less: Cost of Goods Sold Gross Profit $256,000 $198,905 $57,095 Under-absorbed overhead ignored as mentioned in question