Please do not give solution in image format thanku Required information[The following information applies to the questions displayed below.]Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enterproduction at the beginning of the cutting process. The following information is available regarding its May inventories.Raw materials inventoryWork in process inventory-CuttingWork in process inventory-StitchingFinished goods inventoryDirect materialsRaw materials purchased on creditDirect materials used-CuttingDirect materials used-StitchingDirect laborDirect labor-CuttingDirect labor-StitchingThe following additional information describes the company's production activities for May.Factory Overhead (Actual costs)Indirect materials usedIndirect labor usedOther overhead costs.Factory Overhead RatesCuttingStitchingSales$ 18,10072,400BeginningInventory$ 31,000(a) Transferred to work in process-Stitching(b) Transferred to finished goods(c) Cost of goods sold93,500113,30030,100$ 50,00023,0000EndingInventory$36,400$ 21,60056,00052,00085,50076,00018,250150% of direct materials used120% of direct labor used$ 456,000Required:1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching tofinished goods, and (c) cost of goods sold. Hint: Compute the total production costs in each department and then subtract the endinginventory to get the amount transferred out of each department.

Calculation of Production cost transfer from cutting to stitching , production cost transfer cost…

Required information [The following information applies to the questions displayed below.] Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials 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 Finished goods inventory 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 $ 18,100 72,400 Beginning Inventory $ 31,000 93,500 113,300 30,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 50,000 23,000 0 Ending Inventory $ 36,400 85,500 $ 21,600 56,000 52,000 76,000 18,250 150% of direct materials used 120 % of direct labor used $ 456,000 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.

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...