Question

Please show the computation to obtain the answers.
12. Required information [The following information applies to the questions displayed below.) Part 1 of 2 0.58 points 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: Beginning Ending Inventory Inventory $ 76,000 $ 91,750 183,500 130,500 Raw materials inventory Work in process inventory- Cutting Work in process inventory- Stitching Finished goods inventory 203.300 103,900 48,100 36,250 The following additional information describes the company's production activities for May. $95,000 Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used, Stitching 25,250 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 22,600 90,400 170,800

Answer 1

Raw materials (RM)
RM-April 30	76,000	Direct M-cutting	25,250
purchases	95,000	indirect mat	54,000
ending bal	91,750
Work in process (WIP)-Stitching
WIP-April 30	203,300	Cof GM-Stitching	437,005
Cof GM-cutting	138,725
DL-stitching	90,400
OH-Stitching	108480
WIP-May 31	103,900
Factory overhead
indirect Materials used	54,000	oh applied -cutting	37875		(150 % of DM 25,250)
indirect labor used	57,800	oh applied-stitching	108480		(120% of DL 90,400)
other oh costs	61,000
Balance	26,445

Income Statement (partial)
Sales			8,160,000		8,160,000
Cost of goods sold			448,855		475,300
Gross profit			7,711,145		7,684,700
(used unadjusted cost of good sold)					(if adjusted cogs required use these figures)
Work in process (WIP)-Cutting
WIP-April 30	183,500	C of GM-Cutting	138,725
Direct materials-cutting	25,250
DL-Cutting	22,600
OH-cutting	37875
WIP-May 31	130,500

Factory wages payable
Total factory payroll	170,800	DL cutting	22,600
		DL-Stitching	90,400
		indirect labor	57,800
end bal	0
Finished goods
FG-April 30	48,100	COGS	448,855
C of GM-Stitching	437,005
FG-May 31	36,250
cost of goods tranferred to finished goods				437,005
cost of goods sold				448,855

	Journal Entries
No	Date	General Journal				Debit	Credit
1	31-May	Raw materials inventory				95,000
		Accounts payable					95,000
2	31-May	Work in process inventory-Cutting				25,250
		Raw materials inventory					25,250
3	31-May	Factory overhead				54,000
		Raw materials inventory					54,000
4	31-May	Work in process inventory-Cutting				22,600
		Work in process inventory-Stitching				90,400
		Factory wages payable					113,000
5	31-May	Factory overhead				57,800
		Factory wages payable					57,800
6	31-May	Factory wages payab;e				170,800
		cash					170,800
7	31-May	Factory overhead				61,000
		other accounts					61,000
8	31-May	Work in process inventory-Cutting				37875
		Work in process inventory-Stitching				108480
		Factory wages payable					146355
9	31-May	Work in process inventory-Stitching				138,725
		Work in process inventory-Cutting					138,725
10	31-May	finished goods inventory				437,005
		Work in process inventory-Stitching					437,005
11	31-May	cost of good sold				448,855
		Finished goods inventory					448,855
12	31-May	Accounts receivable				816,000
		Sales					816,000