A.) Record the purchase of materials (on credit) B.) Record the direct materials

Question

A.) Record the purchase of materials (on credit) B.) Record the direct materials used in production, as calculated on the cost of materials used. C.) Record the usage of indirect materials D.) Record the cost of direct labor incurred but not yet paid. (Use “Factory payroll payable account”) E.) Record the cost of indirect labor incurred but not yet.(Use “Factory payroll payable” account) F.) Record of the payment of the total factory payroll G.) Record the cost of other factory overhead costs(credit Other Accouts) H.) Record the application of overhead at a rate of 115% of direct labor I.) Record the transfer of production to finish goods, as calculated on the cost of goods manufactured tab. J.) Record the sale of goods on account 6 Homework Sierra Company manufactures woven blankets and processing department. The following information is available regarding its May inventories. accounts for product costs using process costing. The company uses a singke Hork in process inventory Finished goods inventory 435,8ee 515,800 The following additional information describes the company's production activities for May Raw saterials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used 5 25e,ee2 1,530,899 87,009 157,see Indirect Labor u Direct s 78e, eee 50,809 Overhead rate as a percent of direct labor Sales (on credit) $2,5e9,eee General Journal Trial Balance Gross Profit Mfg General Journal tab- Prepare journal entries to record the transactions of Sierra Company during the month of May. Cost of Materials Used tab -Caloulate the total cost of direct materials used in production during May. Cost of Goods Manufactured tab-Prepare a schedule of cost of goods manufactured for Sierra Company for the month of May. Cost of Goods Sold tab Prepare a schedule of cost of goods sold for Sierra Company for the month of May Gross Profit tab- Calculate the gross profit on sales for May General Journal

Explanation / Answer

Solution:

Sierra Company Schedule of direct material used in production For the month ended May 31 Particulars Amount Beginning raw material inventory $60,000.00 Add: raw material purchases $250,000.00 Raw materials available $310,000.00 Less: Ending raw material inventory $92,500.00 Total raw material used $217,500.00 Less: Indirect material used $60,000.00 Direct material used $157,500.00

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