Sierra company manufactures woven blankets journal entry

Problem 20-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4

[The following information applies to the questions displayed below.]

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

Beginning Inventory

Ending Inventory

Raw materials inventory

$

60,000

$

41,000

Goods in process inventory

449,000

521,500

Finished goods inventory

610,000

342,001

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)

1,850,300

Other overhead cost (Other Accounts credited)

82,000

Materials used

Direct

$

200,500

Indirect

50,000

Labor used

Direct

$

1,060,300

Indirect

790,000

Overhead rate as a percent of direct labor

115

%

Sales (on credit)

$

3,000,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

\\\\\ rev: 11_02_2011

references

1.

value: 2.00 points

Problem 20-1A Part 1

Required:

1(a)

Compute the cost of products transferred from production to finished goods. (Omit the "$" sign in your response.)

Cost of products transferred

$

1(b)

Compute the cost of goods sold. (Omit the "$" sign in your response.)

Cost of goods sold

$

rev: 10_31_2011

check my work eBook Links (4) references

2.

value: 5.00 points

Problem 20-1A Part 2

2(a)

Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(b)

Prepare journal entry dated May 31 to record the direct materials usage. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(c)

Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(d)

Prepare journal entry dated May 31 to record the payroll costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(e)

Prepare journal entry dated May 31 to record the direct labor costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(f)

Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(g)

Prepare journal entry dated May 31 to record the other overhead costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(h)

Prepare journal entry dated May 31 to record the overhead applied. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(i)

Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31