Question

The table lists the Storico data concerning trading goods and services for the United States what was the trade balance and goods in 2000

Required information Problem 16-1A Production cost flow and measurement: journal entries LO P1, P2, P3, P4 The following information applies to the questions displayed below] 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 Ending Beginning Inventory Inventory $ 61,000 68,000 Raw materials inventory Hork in process inventory Finished goods inventory 405,5ee 630,e00 577,000 562,000 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 (0ther Accounts credited) Materials used Direct Indirect $ 280,000 1, 586,000 5,000 $ 205,000 68,000 Labor used Direct $ 790,e00 796,000 11ex Indirect Overhead rate as a percent of direct labor Sales (on credit) $2,5e0,000 The predetermined overhead rate was computed at the beginning of the year as 110 % of direct labor cost

Answer 1

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Naming convention is note available, can be slightly different. Sign of COGS can be negative or postive as per question requiremnet. Solution: Raw Materials (RM) Work in Process (WIP) 61000 Indirect Material 280000 DM used 405500 Cost of goods manuf. RM- April 30 WIP - April 30 1692500 68000 RM Purchases 205000 DM Used 205000 790000 DL Used Overhead Applied 869000 68000 577000 RM- May 31 WIP May 31 Factory Payroll Payable 1586000 Indirect Labor Finished Goods (FG) 630000 Cost of goods sold 1692500 Total Factory PR paid FG April 30 1760500 796000 Cost of goods Manuf DL Used 790000 FG May 31 562000 Factory Overhead Income Statement (Partial) 68,000 Overhead Applied $ Indirect Material Sales 869000 2500000 Indirect Labor Cost of goods sold 796000 1760500 or -1760500 Other overhead cost Gross Profit 5,000 739500 Cost of Goods transferred 1692500 Cost of Goods sold 1760500