Question

GLO301 - Based on Problem 03-1A LO P1, P2, P3, P4 Walsh 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: Raw materials Inventory Work in process inventory-Cutting Work in process inventory-stitching Finished goods Inventory Beginning Inventory $111,000 253,500 273,300 230,180 Ending Inventory $134,500 62,000 165,500 50,250 The following additional information describes the company's production activities for May Direct materials waterials purchased on credit Direct materials used-Cuttine Direct materials used-stitching $130. 27,000 Direct Labor Direct laboe Cutting Direct labor-stitching Total factory payroll paid in cash) $ 26,100 104.400 Factory Overhead (Actual costs Indirect materials used Indirect labor used other overhead costs 68.de Factory Overhead Rates ofdletters felha SL . Answer is not complete Tal Balance Goods MyGoods ting Goods Prepare journal entries for the month of May's transactions

Answer 1

Credit Date Account Title & Explanation 31-May Raw Materials Inventory Accounts Payable Debit 130,000 130,000 27,000 34 35 36 37 38 39 40 41 42 43 31-May Work in Process Inventory-Cutting Raw Materials Inventory 27,000 79,200 31-May Factory Overhead Raw Materials Inventory 79,200 31-May Work in Process Inventory-Cutting Work in Process Inventory -Stitching Factory Wages Payable 26,100 104,400 45 46 130,500 47 59,200 31-May Factory Overhead Factory Wages Payable 49 50 59,200 189,700 31-May Factory Wages Payable Cash 189,700 54 68,000 31-May Factory Overhead Other Accounts 68,000

31-May Work in Process Inventory-Cutting Work in Process Inventory -Stitching Factory Overhead 40,500 125,280 59 165,780 60 61 285,100 (253500+27000+26100+40500-62000) 31-May Work in Process Inventory -Stitching Work in Process Inventory-Cutting 62 285,100 63 622,580 (273300+285100+125280+104400-165500) 31-May Finished Goods Inventory Work in Process Inventory -Stitching 65 622,580 66 802,430 (622580+230100-50250) 31-May Cost of Goods Sold Finished Goods Inventory 802,430 67 68 69 70 31-May Accounts Receivable Sales 1,096,000 1,096,000 Verify the ending Balanc in Raw Material Beginning Raw Material Inventory Raw materials purchased Materials available for use Indirect Materials used Direct materials used Ending Raw Material Inventory 111,000 130,000 241,000 (79,200) (27,000) 134,800

Walsh Company Cost of Goods Manufactured Direct materials used 27,000 Direct labor 130,500 Factory Overhead 165,780 Total manufacturing costs added during the May Beginning Work in process inventory Total cost of work in Process Less Ending work in process inventory Cost of goods manufactured 323,280 526,800 850,080 227,500 622,580 Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of Goods Available for sale Less Ending Finished Goods Inventory Cost of goods Sold 230,100 622,580 852,680 50,250 802,430 103 104 105 Sales Cost of Goods Sold Gross Profit 1,096,000 802,430 293,570