Question

Checking if the first part is right and need help with the jounal entires

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 Inventory $91.000 213,500 233,100 54,100 Ending Inventory $110.280 Rare materials inventory Work in process inventory Cutting Work in process inventory Stitching Finished goods inventory 113,200 42,25 The following additional Information describes the company's production activities for May Direct aterials Raw materials purchased on credit Direct materials used-cutting Direct materials used-stitching $110,000 26.000 Direct labor Direct laborCutting Direct labor stitching Total factory payroll paid (in cash) 524.100 178,900 Factory Overhead (actual costs) Indirect materials used Indirect labor used Other verhead costs $ 64, 64. Factory Overhead Rates (150 of direct materials used Stitching (1205 of direct labor wed) Sales 59 36,000 < Prex 34 of 4 5 Next > DLL

Answer 1

Dear student,

I have checked your accounts they are done perfectly. only thing needs to be corrected is the title on the credit (right) side of Working in process – stitching.. it should not be C of GM-cutting instead it should of C of GM - finished goods inventory.

No.	Date	General journal	Debit	Credit
1	May 31	Raw materials inventory	110000
		Accounts payable		110000
2	May 31	Working in process – cutting	26000
		Raw materials inventory		26000
3	May 31	Factory overhead	64800
		Raw materials inventory		64800
4	May 31	Working in process – cutting	24100
		Working in process – stitching	96400
		Factory wages payable		120500
5	May 31	Factory overhead	58400
		Factory wages payable		58400
6	May 31	Factory wages payable	178900
		Cash		178900
7	May 31	Factory overhead	64000
		Other accounts		64000
8	May 31	Working in process – cutting (26000*150%)	39000
		Working in process – stitching (96400*120%)	115680
		Factory overhead		154680
9	May 31	Working in process – stitching	157100
		Working in process – cutting		157100
10	May 31	Finished goods inventory	489280
		Working in process – stitching		489280
11	May 31	Cost of goods sold	501130
		Finished goods inventory		501130
12	May 31	Accounts receivable	936000
		Sales		936000