Required information Problem 20-5A (Algo) Production cost flow and measurement: journal entries LO P3, P4 [The following information applies to the questions displayed below] 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 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching 70,500 66,700 12,250 The following additional information describes the company's production activities for May. Direct labor Direct labor-Cutting Direct labor-Stitching $ 16,600 66,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales Beginning Inventory Transferred to work in process-Stiching Transferred to finished goods $ 16,000 63,500 83,300 24,100 S $ 35,000 22,250 0 Ending Inventory $ 17,950 $ 10,000 55,400 49,000 150% of direct materials used 120% of direct labor used Problem 20-5A (Algo) Part 1 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. Hint Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department $336,000
Required information Problem 20-5A (Algo) Production cost flow and measurement: journal entries LO P3, P4 [The following information applies to the questions displayed below] 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 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching 70,500 66,700 12,250 The following additional information describes the company's production activities for May. Direct labor Direct labor-Cutting Direct labor-Stitching $ 16,600 66,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales Beginning Inventory Transferred to work in process-Stiching Transferred to finished goods $ 16,000 63,500 83,300 24,100 S $ 35,000 22,250 0 Ending Inventory $ 17,950 $ 10,000 55,400 49,000 150% of direct materials used 120% of direct labor used Problem 20-5A (Algo) Part 1 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. Hint Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department $336,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...
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Required information
Problem 20-5A (Algo) Production cost flow and measurement; journal entries LO P3, P4
[The following information applies to the questions displayed below]
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.
Raw materials inventory
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
Direct materials
Raw materials purchased on credit
Direct materials used-Cutting
Direct materials used-Stitching
Direct labor
Direct labor-Cutting
Direct labor-Stitching
70,500
66,708
12,250
The following additional information describes the company's production activities for May.
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor usedi
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
$ 16,600
66,400
Problem 20-5A (Algo) Part 1
Beginning
Inventory
$ 16,000
63,500
83,300
24,100
tal Transferred to work in process-Stiching
Transferred to finished goods
$ 35,000
22,250
0
Ending
Inventory
$ 17,950
5 10,000
55,400
49,000
150% of direct materials used
120k of direct labor used
$336,000
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. Hint Compute the total production costs in each department and then subtract the ending
inventory to get the amount transferred out of each department](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046071f2-84d0-4881-8444-1fa873cbd77c%2F4d1ae3c9-6930-456b-a3d9-e8e0bee8996b%2Fywj171r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:nces
Required information
Problem 20-5A (Algo) Production cost flow and measurement; journal entries LO P3, P4
[The following information applies to the questions displayed below]
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.
Raw materials inventory
Work in process inventory-Cutting
Work in process inventory-Stitching
Finished goods inventory
Direct materials
Raw materials purchased on credit
Direct materials used-Cutting
Direct materials used-Stitching
Direct labor
Direct labor-Cutting
Direct labor-Stitching
70,500
66,708
12,250
The following additional information describes the company's production activities for May.
Factory Overhead (Actual costs)
Indirect materials used
Indirect labor usedi
Other overhead costs
Factory Overhead Rates
Cutting
Stitching
Sales
$ 16,600
66,400
Problem 20-5A (Algo) Part 1
Beginning
Inventory
$ 16,000
63,500
83,300
24,100
tal Transferred to work in process-Stiching
Transferred to finished goods
$ 35,000
22,250
0
Ending
Inventory
$ 17,950
5 10,000
55,400
49,000
150% of direct materials used
120k of direct labor used
$336,000
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. Hint Compute the total production costs in each department and then subtract the ending
inventory to get the amount transferred out of each department
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