Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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. Beginning Inventory Ending Inventory Raw materials inventory $ 6,000 $ 3.250 Work in process inventory-Cutting 43-500 51.500 Work in process inventory-Stitching 63,300 60,500 Finished goods inventory 20,100 8,250 Direct Materials Raw materials purchased on credit $ 25,000 Direct materials used-Cutting 21,750 Direct máterials used-Stitching Direct Labor Direct labor-Cutting $ 15,600 Direct labor-Stitching 62,400 Total factory payroll paid (in cash) 133,000 Factory Overhead (actual costs) Indirect materials used $6,000 Indirect labor used 55,000 Other overhead costs 47,000 Factory Overhead Rates Cutting 150% of direct materials used Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $256,000 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. Check (1g Cost of goods sold, $213.905 2. Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, () payment of factory payroll, (g) other overhead costs (credit Other Accounts), (h) overhead applied, (1) goods transferred from Cutting to Stitching, () goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. 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. Beginning Inventory Ending Inventory Raw materials inventory $ 6,000 $ 3.250 Work in process inventory-Cutting 43-500 51.500 Work in process inventory-Stitching 63,300 60,500 Finished goods inventory 20,100 8,250 Direct Materials Raw materials purchased on credit $ 25,000 Direct materials used-Cutting 21,750 Direct máterials used-Stitching Direct Labor Direct labor-Cutting $ 15,600 Direct labor-Stitching 62,400 Total factory payroll paid (in cash) 133,000 Factory Overhead (actual costs) Indirect materials used $6,000 Indirect labor used 55,000 Other overhead costs 47,000 Factory Overhead Rates Cutting 150% of direct materials used Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $256,000 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. Check (1g Cost of goods sold, $213.905 2. Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, () payment of factory payroll, (g) other overhead costs (credit Other Accounts), (h) overhead applied, (1) goods transferred from Cutting to Stitching, () goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales.
Expert Answer:
Answer rating: 100% (QA)
1 a Production costs transferred from cutting to stitching Work in process inventoryCutting beginnin... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
Students also viewed these accounting questions
-
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...
-
43) A 2/10, net 30 credit policy: A) is an expensive form of short-term credit if a buyer forgoes the discount. B) provides cheap financing to the buyer for 30 days. C) an inexpensive means of...
-
Direct raw materials were purchased on account, and the costs were subsequently transferred to Work in Process Inventory. How would the transfer affect assets, liabilities, equity, and cash flows?...
-
Discuss the factors that impact on recruitment and selection in organisations. 1.regulatory and legislative factors 2.organisational factors 3.labour market factors.
-
Would you be able to recognize a sound training program is you saw one? What features would you look for?
-
What are the benefits associated with taking a pro- active approach to change and what are the benefits associated with a reactive approach to change?
-
Consider the hemodialysis device using the hollow-fiber module in Figure 24.1, operating \(12 \mathrm{hr} / \mathrm{wk}\) (3 days, \(4 \mathrm{hr} /\) day) at a dialysis center. As shown in Example...
-
Flom Company is considering the cash purchase of 100% of the outstanding stock of Vargas Company. The terms are not set, and alternative prices are being considered for negotiation. The balance sheet...
-
Crispi Brewing, is a small brewing company that manufactures small-batch beers. They produce only 12 oz. cans of beer for distribution and sale. To make the beer, the grain is boiled to make a wort....
-
A steel pinion having a diameter of about 254 mm meshes with a steel gear which turns at 1/3 the angular speed of the pinion. The torque of 3,222 kgcm (18,000 lb-in). The angle of cut of the teeth is...
-
Using one of the bond calculators provided, find the yield to maturity on a bond with a current price of $1144, with an annual coupon rate of 12%, a face value of $1,000 and 18 years remaining until...
-
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 201 Purchased Apr. 21 Purchased July 25 330 units Sept. 191 Purchased Purchased 80 90 units...
-
First: Tour the GoPro website at www.gopro.com. Peruse the tabs across the top, concentrating on the extreme videos and photos submitted by loyal fans. How does the company encourage its customers to...
-
One of your paralegal colleagues has a calendar on the wall in their office. It is in a corner behind a bookshelf. It cannot be seen from the door of the office, but it can easily be seen by anyone...
-
The bartender and the owner both have fiduciary duties to ensure they do not overserve their patrons and by law should be carding anyone who may not be 21. So, I would sue both the establishment and...
-
Write a paper including the budget for your idea from unit 4. Each paper should include an introduction and conclusion, should be 4-6 pages (double spaced), 2.54 cm margins (the default on MS Word),...
-
Given table below answer the questions. Beginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods manufactured Ending inventory Merchandise Finished goods Unimart...
-
Fill in each blank so that the resulting statement is true. 83 + 103 = ______ .
-
Understanding the context-sensitive nature of classifying activities Mauldin Company makes two types of cell phones. Handy is a thin, pocket-size cell phone that is easy to carry around. Action is a...
-
The following financial statements apply to Bassie Company. Required Calculate the following ratios for 2011 and 2012. When data limitations prohibit computing averages, use year-end balances in your...
-
When would variable cost volume variances be expected to be unfavorable? How should unfavorable variable cost volume variances be interpreted?
-
When a contracting hot ball of gas spins into a disk shape, it cools faster due to (a) increased radiation transfer. (b) increased surface area. (c) decreased insulation. (d) increased convection...
-
The Sun contains what percentage of the solar systems mass? (a) about 35% (b) 85% (c) the percentage varies over time (d) over 99%
-
The nebular theory is based on the observation that the solar system (a) follows patterns indicating that it formed progressively from physical processes. (b) has a structure much like an atom. (c)...
Study smarter with the SolutionInn App