Question

Required Information Problem 20-1A Production cost flow and measurement, Journal entries LOP [The following Information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using pro one of its processing departments. The following Information is available regarding its Ma Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending Inventory Inventory $ 51,eee $ 58,eee 444,500 575,eee 614, eee 542, eee The following additional Information describes the company's production activities for May 260, eee 1,577, eee 14,80 Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (other Accounts credited) Materials used Direct Indirect Labor used Direct Indirect Overhead rate as a percent of direct labor Sales con credit) 167,898 86,00 780, eee 797. aee 1153 4,5ee, see The predetermined overhead rate was comouted at the beginning of the year as 115% of dire

Answer 1

Solved first question as per HomeworkLib policy. Please post second one separately.

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Part 2 Part 1 Raw material Date Account Debit Credit Debit Beginning May $ 1,713,500 Credit $ 167,000 $ 86,000 $ $ $ 51,000 May 260,000 May May 260,000 Raw Material inventory Accounts Payable (To record purchase of raw material) Debit Beginning $ May $ May $ May $ Ending $ Work in process inventory Credit 444,500 Finished Goods 167,000 (Plug in) 780,000 897,000 575,000 $ 260,000 Ending $ 58,000 May $ 167,000 Work in process inventory Raw Material inventory (To record usage of direct material) $ 167,000 Factory Wages Payable Debit $ 1,577,000 May May May Finished Goods Debit Credit Beginning $ 614,000 Cost of Goods Sold WIP $ 1,713,500 Plug in $ 86,000 May Credit $ 780,000 $ 797,000 Factory Overhead Raw Material inventory (To record usage of indirect material) $ 1,785,500 $ 86,000 Ending Ending $ 542,000 May $ 780,000 Work in process inventory Factory wages payable (To record usage of direct labor cost) $ 780,000 Factory Overhead Debit Credit $ 897,000 May $ 797,000 Factory Overhead Factory wages payable (To record usage of indirect labor cot) May May May Ending $ $ $ S- 86,000 May 797,000 14,000 $ 797,000 May $ 1,577,000 Income Statement: Factory wages payable Cash (To record payment of wages) $ 1,577,000 Sale Less: Cost of goods sold Gross margin $ 4,500,000 $ (1,785,500) $ 2,714,500 May $ 14,000 Factory Overhead Other Accounts (To record other overheads incurred) $ 14,000 Cost of goods transferred Cost of goods sold $ 1,713,500 $ 1,785,500 May $ 897,000 Work in process inventory Factory Overhead (To record overhead applied) $780,000*115% $ 897,000 May $ 1,713,500 Finished goods inventory Work in process inventory (To record transfer of completed goods) $ 1,713,500 May $ 4,500,000 Accounts Receivable Sale (To record sale) $ 4,500,000 May $ 1,785,500 Cost of goods sold Finished goods Inventory (To record cost of goods sold) $ 1,785,500