GL$1601-$ Based on Problem $16-5$A $($Algo$)$ LO P$3,$ P$4$

Walsh 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:

The following additional information describes the company's production activities for May

Direct materials

Direct materials

Raw materials purchased $on$ credit $$130,000$

Direct materials used$-$Cutting $27,000$

Direct materials used$-$Cutting $27,000$

Direct materials used$-$Stitching

Direct labor

Direct labor$-$Cutting $$26,100$

Direct labor$-$Stitching $104,400$

Factory Overhead $($Actual costs$)$

Indirect materials used

Indirect labor used Other overhead costs

Factory Overhead Rates

Cutting

$(150\%$ of direct materials used$)$ of direct labor used$)$

Sales

$$1,096,000$

Prepare journal entries for the month of May's transactions.

View transaction list

Journal entry worksheet

Record the purchase of materials $($on credit$).$

Note: Enter debits before credits.