Question

Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories Beginning Ending Inventory Inventory $ 65,000 73,500 517,000 505,000 Raw materials inventory Work in process inventory Finished goods inventory 445,500 633,000 The following additional information describes the company's production activities for May Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used 280,000 1,562,000 53,000 209,500 62,000 Direct Indirect Labor used Direct Indirect 780,000 782,000 Overhead rate as a percent of direct labor Sales (on credit) 115% 5,500,000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

Need All 11 Journal Entries

Answer 1

Journal entry

No	Account and explanation	debit	credit
a	Raw material	280000
	account payable		280000
	(To record purchase raw material)
b	Work in process	209500
	Raw material		209500
	(To record direct material)
c	Manufacturing overhead	62000
	Raw material		62000
	(To record indirect material)
d	Work in process	780000
	Wages payable		780000
	(To record direct labor)
e	Manufacturing overhead	782000
	Wages payable		782000
	(To record indirect labor)
f	Wages payable	1562000
	Cash		1562000
	(To record labor paid)
g	Manufacturing overhead	53000
	Other overhead		53000
	(To record other overhead)
h	Work in process (780000*115%)	897000
	Manufacturing overhead		897000
	(To record applied overhead)
i	Finished goods	1815000
	Work in process		1815000
	(To record production of goods)
j	Account receivable	5500000
	Sales revenue		5500000
	(To record sales)
h	Cost of goods sold	1943000
	Finished goods		1943000
	(To record cost of goods sold)