GL1601 - Based on Problem 16-5A (Algo) LO P3, P4

Byrnes 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	$ 51,000	$ 61,000
Work in process inventoryCutting	133,500	56,000
Work in process inventoryStitching	153,300	105,500
Finished goods inventory	110,100	26,250

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

Direct materials
Raw materials purchased on credit	$ 70,000
Direct materials usedCutting	24,000
Direct materials usedStitching	0

Direct labor
Direct laborCutting	$ 20,100
Direct laborStitching	80,400

Factory Overhead (Actual costs)
Indirect materials used	$ 36,000
Indirect labor used	56,800
Other overhead costs	56,000

Factory Overhead Rates
Cutting	(150% of direct materials used)
Stitching	(120% of direct labor used)

Sales	$ 616,000

Please Finish the journal entries listed below. Thank you!

• Record the purchase of materials (on credit).

• 2

  Record direct materials used in production.

• 3

  Record the usage of indirect materials.

• 4

  Record the cost of direct labor incurred but not yet paid. (Use "Factory wages payable" account).

• 5

  Record the cost of indirect labor incurred but not yet paid. (Use "Factory wages payable" account).

• 6

  Record overhead costs paid in cash.

• 7

  Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching).

• 8

  Record the transferred costs of partially completed goods.

• 9

  Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab.

• 10

  Record the sale of goods on account.

• 11

  Record the cost of goods sold, as calculated on the cost of goods sold tab.