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Sierra company manufactures woven blankets journal entry

03/05/2021 Client: muhammad11 Deadline: 2 Day

Sierra Company manufactures woven blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.

Sierra Company manufactures woven blankets and accounts for product costs

The following additional information describes the company€™s production activities for May.
Raw materials purchases (on credit) . . . . . . . . . . . . . . . . . . . $ 250,000
Factory payroll cost (paid in cash) . . . . . . . . . . . . . . . . . . . . . 1,530,000
Other overhead cost (Other Accounts credited) . . . . . . . . . . 87,000
Materials used Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 157,500
Indirect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Labor used Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 780,000
Indirect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000
Overhead rate as a percent of direct labor . . . . . . . . . . . . . . . 115%
Sales (on credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000

Required
1. Compute the cost of
(a) Products transferred from production to finished goods,
(b) Goods sold.
2. Prepare summary journal entries dated May 31 to record the following production activities during May:
(a) Raw materials purchases,
(b) Direct materials usage,
(c) Indirect materials usage,
(d) Payroll costs,
(e) Direct labor costs,
(f) Indirect labor costs,
(g) Other overhead costs,
(h) Overhead applied,
(i) Goods transferred from production to finished goods,
(j) Sale of finishedgoods.

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