GL0301 - Based on Problem 3-5A (Algo) LO P3, P4 Clancy 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. \begin{tabular}{c|c} \hline Cost of & Cost of \\ Goods Mfg & Goods Sold \\ Stitching & \\ \hline \end{tabular} Prepare journal entries for the month of May's transactions. Prepare journal entries for the month of May's transactions. Direct materials Raw materials purchased on credit $135,00 Direct materials used-Cutting 27,25 Direct materials used-stitching b) Direct labor Direct labor-Cutting $26,6 Direct labor-stitching 196,40 Factory Overhead (Actual costs) Indirect materials used $82,8 Indirect labor used 59,40 other overhead costs 69, Factory Overhead Rates Cutting (150\% of direct materials used) stitching (129\% of direct labor used) sales $1,136, \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline Requirement & GeneralJournal & GeneralLedger & Trial Balance & RawMaterials & CostofGoodsMfgCutting & CostofGoodsMfgStitching & CostofGoodsSold & Gross Profit \\ \hline \end{tabular} Verify the ending balance in raw materials inventory. Materials used should be indicated with a minus sign. \begin{tabular}{|l|l|} \hline Beginning Raw Materials Inventory & \\ \hline Raw materials purchased & \\ \hline Materials available for use & \\ \hline Direct materials used & \\ \hline Indirect materials used & \\ \hline Ending raw material inventory & $ \\ \hline \end{tabular} Trial Balance Cost of Goods Mifg Cutting Prepare a schedule of cost of goods manufactured for the Cutting Department for the month of May. Prepare a schedule of cost of goods manufactured for the Stitching Department for the month of May. Calculate the value of cost of goods sold for the month of May. Ignore any over-or underapplied overhead in the calculation of cost of goods sold. The following additional Information describes the company's production activitles for May. sales $1,136, Cost of Goods Mfg Stitching Calculate the value of gross profit for the month of May