Required Information Problem 3-5A (Algo) Production cost flow and measurement Journal entries LO P3, P4 [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. Ending Inventory $ 97,900 135,500 107,808 38,258 The following additional Information describes the company's production activities for May. Raw materials inventory work in process inventory-Cutting Work in process inventory Stitching Finished goods inventory Direct materials Raw materials purchased on credit Direct materials used Cutting Direct materials used-stitching Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Stitching $ 23,100 e. Indirect sbor used f. Other overhead costs paid in cash Beginning Inventory $ 81,000 193,580 213,300 50,100 $100,000 25,508 8 $57,500 62,000 158% of direct materials used 120% of direct labor used g. Overhead applied h. Goods transferred from Cutting to Stitching 1. Goods transferred from Stitching to finished goods J. Sales (on account) k. Cost of goods sold Problem 3-5A (Algo) Part 2 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materia's used c. Indirect materials used d. Direct labor used $856,000
Required Information Problem 3-5A (Algo) Production cost flow and measurement Journal entries LO P3, P4 [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. Ending Inventory $ 97,900 135,500 107,808 38,258 The following additional Information describes the company's production activities for May. Raw materials inventory work in process inventory-Cutting Work in process inventory Stitching Finished goods inventory Direct materials Raw materials purchased on credit Direct materials used Cutting Direct materials used-stitching Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Stitching $ 23,100 e. Indirect sbor used f. Other overhead costs paid in cash Beginning Inventory $ 81,000 193,580 213,300 50,100 $100,000 25,508 8 $57,500 62,000 158% of direct materials used 120% of direct labor used g. Overhead applied h. Goods transferred from Cutting to Stitching 1. Goods transferred from Stitching to finished goods J. Sales (on account) k. Cost of goods sold Problem 3-5A (Algo) Part 2 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materia's used c. Indirect materials used d. Direct labor used $856,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
Problem 3-5A (Algo) Production cost flow and measurement Journal entries LO P3, P4
[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.
Direct materials
Raw materials purchased on credit
Direct materials used Cutting
Direct materials used-Stitching
Raw materials inventory
work in process Inventory Cutting
work in process Inventory Stitching
Finished goods inventory
The following additional Information describes the company's production activities for May.
Direct labor
Direct labor-Cutting
Direct labor-Stitching
Factory Overhead (Actual costs)
Indirect materials used
Indirect Inbor used
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
c. Indirect materials used
d. Direct labor used
$ 23,108
e. Indirect Boor used
f. Other overhead costs psd in cash
Beginning
Inventory
$81,000
193,580
213,300
58,180
J. Eles on account)
k. Cost of goods sa c
$180,000
25,588
8
$57,598
58,000
52,838
Problem 3-5A (Algo) Part 2
2. Prepare May 31 journal entries to record the following May activities:
a. Row materiais purchases
b. Direct materias used
g. Overneed spp ed
h. Goods transferred from Cutting to Stitening
L. Goods transferred from Stitching to finished goods
Ending
Inventory
$ 97,988
135,588
187,888
38,258
158% of direct sterials used
120% of direct labor used
$ 856,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F25310e27-d02e-4900-871a-4bca6692b57f%2Fcf564668-1513-4acd-8ed8-963d722375b9%2Fets7aw7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
Problem 3-5A (Algo) Production cost flow and measurement Journal entries LO P3, P4
[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.
Direct materials
Raw materials purchased on credit
Direct materials used Cutting
Direct materials used-Stitching
Raw materials inventory
work in process Inventory Cutting
work in process Inventory Stitching
Finished goods inventory
The following additional Information describes the company's production activities for May.
Direct labor
Direct labor-Cutting
Direct labor-Stitching
Factory Overhead (Actual costs)
Indirect materials used
Indirect Inbor used
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
c. Indirect materials used
d. Direct labor used
$ 23,108
e. Indirect Boor used
f. Other overhead costs psd in cash
Beginning
Inventory
$81,000
193,580
213,300
58,180
J. Eles on account)
k. Cost of goods sa c
$180,000
25,588
8
$57,598
58,000
52,838
Problem 3-5A (Algo) Part 2
2. Prepare May 31 journal entries to record the following May activities:
a. Row materiais purchases
b. Direct materias used
g. Overneed spp ed
h. Goods transferred from Cutting to Stitening
L. Goods transferred from Stitching to finished goods
Ending
Inventory
$ 97,988
135,588
187,888
38,258
158% of direct sterials used
120% of direct labor used
$ 856,800
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