Question

The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories Raw materials inventory Work in process inventory Finished goods inventory Beginning Inventory $ 54.000 404,500 640,000 Ending Inventory $ 50.500 555,000 289,001 The following additional information describes the company's production activities for May $ 260,000 1,537,000 72.000 $ Raw materials purchases (on credit) Factory payroll cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used Direct Indirect Labor used Direct Indirect Overhead rate as a percent of direct labor Sales (on credit) 195.500 68,000 $ 780,000 757,000 11596 $2.500.000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

please label as they would, i am very confused on that part in particular. show all work, thank you!

Answer 1

Sierra Company RM April 30 RM Purchases Raw Materials 54000 Indirect Materials 260000 Direct Material used 1722000 68000 195500 WIP April 30 Direct Material used Direct Labor used Overhead applied Work in Progress 404500 Cost of goods manufactured 195500 780000 897000 WIP May 31 2277000 RM May 31 314000 50500 314000 555000 2277000 Total Factory wages paid Factory Wages Payable 1537000 indirect Labor Direct Labor used 2072999 757000 780000 FG April 30 Cost of goods manufactured Finished Goods 640000 Cost of Goods sold 1722000 FG May 31 2362000 289001 2362000 1537000 1537000 Income Statement (Partial) 897000 Sales Indirect Materials Indirect Labor Other Overhead Costs Factory Overhead 68000 Overhead applied 757000 72000 Cost of goods sold Gross Profit 2500000 2072999 427001 897000 897000 Cost of goods transferred Cost of Goods sold 1722000 2072999

Journal Enteries Date Particulars May-31 Raw material Inventory a/c Dr. To Accounts Payable Debit in $ Credit in $ 260000 260000 195500 May-31 WIP Inventory a/c Dr. To Raw material Inventory 195500 68000 May-31 Factory Overhead a/c Dr. To Raw material Inventory 68000 780000 May-31 WIP Inventory a/c Dr. To Factory Payroll Payable 780000 757000 May-31 Factory Overhead a/c Dr. To Factory Payroll Payable 757000 1537000 May-31 Factory Payroll Payable a/c Dr. To Cash 1537000 Dr. 72000 May-31 Factory Overhead a/c To Other Accounts 72000 897000 May-31 WIP Inventory a/c Dr. To Factory Overhead 897000 1722000 May-31 Finished Goods Inventory a/c Dr. To Work in Process Inventory 1722000 Dr. 2500000 May-31 Accounts Receivable a/c To Sales 2500000 2072999 May-31 Cost of Goods sold a/c Dr. To Finished Goods Inventory 2072999