Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materi- als purchases, (b)

Question

Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materi- als 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, () goods transferred from Cutting to Stitching, () goods transferred from Stitching to finished goods, (k) cost of goods sold, and (I) 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. Ending Inventory Raw materials inventory... Work in process inventory-Cutting Work in process inventory Stitching. Finished goods inventory.... Beginning Inventory $ 6,000 43,500 63,300 20,100 $ 9,250 51,500 60,500 8,250 The following additional information describes the

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Account Titles Debit Credit a Raw Material Inventory $ 25,000 Accounts Payable $ 25,000 b Work in Process - Cutting $ 21,750 Raw Material Inventory $ 21,750 c Factory Overhead $ 6,000 Raw Material Inventory $ 6,000 d Work in Process - Cutting $ 15,600 Work in Process - Stitching $ 62,400 Wages Payable $ 78,000 e Factory Overhead $ 55,000 Wages Payable $ 55,000 f Wages Payable $ 133,000 Cash $ 133,000 g Factory Overhead $ 47,000 Other Accounts $ 47,000 h Work in Process - Cutting $ 32,625 Work in Process - Stitching $ 74,880 Factory Overhead $ 107,505 i Work in Process - Stitching $ 61,975 Work in Process - Cutting $ 61,975 j Finished Goods Inventory $ 202,055 Work in Process - Stitching $ 202,055 k Cost of Goods Sold $ 213,905 Finished Goods Inventory $ 213,905 l Accounts Receivable $ 256,000 Sales Revenue $ 256,000 Cutting Department Direct Material used in production $ 21,750 Direct Labor $ 15,600 Manufacturing Overhead (Cutting) $ 32,625 Total Manufacturing Costs $ 69,975 Add: Beginning Work in Process Inventory $ 43,500 $ 113,475 Deduct: Ending Work in Process Inventory $ 51,500 Cost of Goods Manufactured $ 61,975 Stitching Department Transferred from Cutting Department $ 61,975 Direct Labor $ 62,400 Manufacturing Overhead (Stitching) $ 74,880 Total Manufacturing Costs $ 199,255 Add: Beginning Work in Process Inventory $ 63,300 $ 262,555 Deduct: Ending Work in Process Inventory $ 60,500 Cost of Goods Manufactured $ 202,055 Cost of Goods Sold Cost of Goods Manufactured $

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	Account Titles	Debit	Credit
a	Raw Material Inventory	$ 25,000
	Accounts Payable		$ 25,000

b	Work in Process - Cutting	$ 21,750
	Raw Material Inventory		$ 21,750

c	Factory Overhead	$ 6,000
	Raw Material Inventory		$ 6,000

d	Work in Process - Cutting	$ 15,600
	Work in Process - Stitching	$ 62,400
	Wages Payable		$ 78,000

e	Factory Overhead	$ 55,000
	Wages Payable		$ 55,000

f	Wages Payable	$ 133,000
	Cash		$ 133,000

g	Factory Overhead	$ 47,000
	Other Accounts		$ 47,000

h	Work in Process - Cutting	$ 32,625
	Work in Process - Stitching	$ 74,880
	Factory Overhead		$ 107,505

i	Work in Process - Stitching	$ 61,975
	Work in Process - Cutting		$ 61,975

j	Finished Goods Inventory	$ 202,055
	Work in Process - Stitching		$ 202,055

k	Cost of Goods Sold	$ 213,905
	Finished Goods Inventory		$ 213,905

l	Accounts Receivable	$ 256,000
	Sales Revenue		$ 256,000

Cutting Department
Direct Material used in production	$ 21,750
Direct Labor	$ 15,600
Manufacturing Overhead (Cutting)	$ 32,625

Total Manufacturing Costs		$ 69,975
Add: Beginning Work in Process Inventory		$ 43,500
		$ 113,475
Deduct: Ending Work in Process Inventory		$ 51,500
Cost of Goods Manufactured		$ 61,975

Stitching Department
Transferred from Cutting Department	$ 61,975
Direct Labor	$ 62,400
Manufacturing Overhead (Stitching)	$ 74,880

Total Manufacturing Costs		$ 199,255
Add: Beginning Work in Process Inventory		$ 63,300
		$ 262,555
Deduct: Ending Work in Process Inventory		$ 60,500
Cost of Goods Manufactured		$ 202,055

Cost of Goods Sold
Cost of Goods Manufactured	$ 202,055
Add : Beginning Inventory	$ 20,100
Cost of Goods Available for Sale	$ 222,155
Less : Ending Inventory	$ 8,250
Cost of Goods Sold	$ 213,905

Sales Revenue	$ 256,000
Cost of Goods Sold	$ 213,905
Gross Profit	$ 42,095