Question

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: Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory 73,500 75,500 93,300 69,800 26,100 14,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 40,000 Direct materials used-Cutting 22,500 Direct materials used-stitching es Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 17,100 68,400 141,100 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 14,400 55,600 50,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $376,000

Answer 1

Work in process - Cutting

WIP- April 30	$73,500	Cost of goods manufactured- Cutting	$71,350
Direct materials- Cutting	$22,500
Direct labor- Cutting	$17,100
Overhead- Cutting	$33,750
WIP- May 31	$75,500

Work in process- Snitching

WIP- April 30	$93,300	Cost of goods manufactured- Snitching	$245,330
Cost of goods manufactured- Cutting	$71,350
Direct labor- Snitching	$68,400
Overhead- Snitching	$82,080
WIP - May 31	$69,800

Finished goods

Finished goods- April 30	$26,100	Cost of goods sold	$257,180
Cost of goods manufactured- Snitching	$245,330
Finished goods- May 31	$14,250