Question

1 ! Required information Part 1 of 2 (The following information applies to the questions displayed below.) 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: 0.85 points Work in process inventory-cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory 43,500 51,500 63,300 60,500 20,100 8,250 eBook The following additional information describes the company's production activities for May. Print Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-stitching $ 25,000 21,750 0 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) Stitching (120% of direct labor used) Sales $256,000

Answer 1

Work in Process (WIP)-Cutting
WIP - April 30	$ 43,500	C of GM - Cutting	$ 61,975
Direct materials - Cutting	$ 21,750
Direct labor - Cutting	$ 15,600
Overhead - Cutting	$ 32,625 ( $ 21,750 x 150% )
WIP - May 31	$ 51,500
Work in process (WIP)-Stitching
WIP - April 30	$ 63,300	C of GM - Stitching	$ 202,055
C of GM - Cutting	$ 61,975
Direct labor - Stitching	$ 62,400
Overhead - Stitching	$ 74,880 ( $ 62,400 x 120% )
WIP - May 31	$ 60,500
Finished Goods (FG)
FG - April 30	$ 20,100	Cost of goods sold	$ 213,905
C of GM - Stitching	$ 202,055
FG - May 31	$ 8,250