Homework Help is Here – Start Your Trial Now!
Business
Accounting
[The following information applies to the questions displayed below] Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching. All direct materiais enter production at the beginning of the cutting process. The following information is available regarding its May Inventories. Direct materials: Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Raw materials inventory Work in process inventory-Cutting 70,500 Work in process inventory-Stitching 66,700 Finished goods inventory 12,250 The following additional information describes the company's production activities for May Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used. Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 16,600 66,400 Beginning Inventory $ 16,000 Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 63,500 83,300 24,100 $ 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 $336,000 Required: Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to inished 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

[The following information applies to the questions displayed below] Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching. All direct materiais enter production at the beginning of the cutting process. The following information is available regarding its May Inventories. Direct materials: Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Raw materials inventory Work in process inventory-Cutting 70,500 Work in process inventory-Stitching 66,700 Finished goods inventory 12,250 The following additional information describes the company's production activities for May Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used. Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 16,600 66,400 Beginning Inventory $ 16,000 Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 63,500 83,300 24,100 $ 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 $336,000 Required: Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to inished 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

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 13P: Webster Company uses backflush costing to account for its manufacturing costs. The trigger points...
See similar textbooks
icon
Related questions
Question
[The following information applies to the questions displayed below] Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching All direct materiais enter production at the beginning of the cutting process. The following information is available regarding its May Inventories. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-stitching Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching 70,500 66,700 Finished goods inventory 12,250 The following additional information describes the company's production activities for May Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used i Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 16,600 66,400 Beginning Inventory (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 16,000 63,500 63,300 24,100 $ 35,000 22,250 0 Ending Inventory $ 17,950 $ 10,800 55,400 49,000 150% of direct materials used 120% 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 #
Transcribed Image Text:[The following information applies to the questions displayed below] Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching All direct materiais enter production at the beginning of the cutting process. The following information is available regarding its May Inventories. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-stitching Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching 70,500 66,700 Finished goods inventory 12,250 The following additional information describes the company's production activities for May Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used i Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 16,600 66,400 Beginning Inventory (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 16,000 63,500 63,300 24,100 $ 35,000 22,250 0 Ending Inventory $ 17,950 $ 10,800 55,400 49,000 150% of direct materials used 120% 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 #
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Quality control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS