[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. 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 Direct materials Raw materials purchased on credit $ 120,000 Direct materials used-Cutting Direct materials used-Stitching 26,500 0 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales Beginning Inventory $ 101,000 $ 25,100 100,400 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 233,500 253,300 58,100 Ending Inventory $ 122,500 155,500 119,400 46,250 $72,000 58,800 66,000 150% of direct materials used 120% of direct labor used $ 1,016,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department.
[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. 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 Direct materials Raw materials purchased on credit $ 120,000 Direct materials used-Cutting Direct materials used-Stitching 26,500 0 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales Beginning Inventory $ 101,000 $ 25,100 100,400 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 233,500 253,300 58,100 Ending Inventory $ 122,500 155,500 119,400 46,250 $72,000 58,800 66,000 150% of direct materials used 120% of direct labor used $ 1,016,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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
$ 122,500
Raw materials inventory
Work in process inventory-Cutting
155,500
119,400
Work in process inventory-Stitching
Finished goods inventory
46,250
The following additional information describes the company's production activities for May.
Direct materials used-Cutting
Direct materials used-Stitching
Direct labor
Direct labor-Cutting
Direct labor-Stitching
Direct materials
Raw materials purchased on credit $ 120,000
26,500
0
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor usedi
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
Beginning
Inventory.
$ 25,100
100,400
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 101,000
233,500
253,300
58,100
$ 72,000
58,800
66,000
150% of direct materials used
120% of direct labor used
$ 1,016,000
Required:
1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to
finished goods, and (c) cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending
inventory to get the amount transferred out of each department.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69f0433a-8566-426d-b11f-58f21bd20125%2Fab605f1e-f646-4491-882b-8651de725a16%2Fdhl66a_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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
$ 122,500
Raw materials inventory
Work in process inventory-Cutting
155,500
119,400
Work in process inventory-Stitching
Finished goods inventory
46,250
The following additional information describes the company's production activities for May.
Direct materials used-Cutting
Direct materials used-Stitching
Direct labor
Direct labor-Cutting
Direct labor-Stitching
Direct materials
Raw materials purchased on credit $ 120,000
26,500
0
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor usedi
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
Beginning
Inventory.
$ 25,100
100,400
(a) Transferred to work in process-Stitching
(b) Transferred to finished goods
(c) Cost of goods sold
$ 101,000
233,500
253,300
58,100
$ 72,000
58,800
66,000
150% of direct materials used
120% of direct labor used
$ 1,016,000
Required:
1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to
finished goods, and (c) cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending
inventory to get the amount transferred out of each department.
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