GLO301 - Based on Problem 03-1A LO P1, P2, P3, P4 Stam Company manufactures soccer balls...

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GLO301 - Based on Problem 03-1A LO P1, P2, P3, P4 Stam 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: Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory $121,000 $147,100 273,500 63,000 293,388 175,500 250,100 54,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit Direct materials used Cutting Direct materials used-stitching $140,000 27,500 Direct labor Direct labor-cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 27, 100 108,400 195, 100 Factory Overhead (Actual costs) Indirect materials used $86,400 Indirect labor used 59,600 Other overhead costs 70,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $1,176,000 Trial Balance Materials General General Raw Cost of Cost of Requirement Goods Mfg Goods Mfg Cost of Journal Ledger Cutting Gross Pront Goods Sold Stitching General Journal tab. Prepare journal entries to record the transactions of Stam Company during the month of May. Cost of Materials Used tab - Calculate the total cost of direct materials used in production during May. Cost of Goods Manufactured Cutting and Stitching tab - Prepare a schedule of cost of goods manufactured for Stam Company for the month of May. Cost of Goods Sold tab. Prepare a schedule of cost of goods sold for Stam Company for the month of May. Gross Profit tab - Calculate the gross profit on sales for May. General Journal > uirement Raw General Journal General Ledger Trial Balance Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching GOC epare journal entries for the month of May's transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 12 > a. Record the purchase of materials (on credit Note: Enter debits before credits. Account Title Debit Credit Date May 31 Record entry Clear entry View general journal Co Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching . Good Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 ..... 12 .) b. Record direct materials used in production Note: Enter debits before credits. Account Title Debit Credit Date May 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Costc Goods Prepare journal entries for the month of May's transactions View transaction list Journal entry worksheet 5 6 7 8 ..... 12 c. Record the usage of indirect materials. Note: Enter debits before credits. Account Title Debit Credit Date May 31 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods MfgG Cost of Cutting Stitching Goods Sold Gross Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 ..... 12 > d. Record the cost of direct labor incurred but not yet paid. (Use "Factory wages payable" account). Note: Enter debits before credits ences Date Account Title Debit Credit May 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Gross Pro Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 2 3 4 4 5 6 7 8 ..... 12 e. Record the cost of indirect labor incurred but not yet paid. (Use "Factory wages payable" account). Note: Enter debits before credits. Date Account Title Debit Credit May 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Gross Pr Gross Pre Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 2 3 4 8 ..... 12 f. Record the payment of the total factory payroll. Note: Enter debits before credits. Date Account Title Debit Credit May 31 Record entry Clear entry View general Journal Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Pre Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 ..... 12 > g. Record the cost of other factory overhead costs (credit Other accounts), Note: Enter debits before credits Date Account Title Debit Credit May 31 Record entry Clear entry View general Journal Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 2 3 4 5 8 .... 12 > h. Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching). Note: Enter debits before credits Date Account Title Debit Credit May 31 Record entry Clear entry View general journal General Journal Requirement General Ledger Trial Balance Cost of Cost of Cost of Goods Mfg Goods Mfg Raw Materials Cutting Stitching Goods Sold Gross Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 ..... 4 5 6 7 i. Record the transferred costs of partially completed goods. Tint Note: Enter debits before credits rences Date Account Title Debit Credit May 31 Record entry Clear entry View general Journal View transaction list Journal entry worksheet < 1 ..... 5 6 9 10 .... 12 j. Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab. Note: Enter debits before credits. Account Title Debit Credit Date May 31 Record entry Clear entry View general Journal Requirement Cost of General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Goods Sold Gross Pr Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 ... 5 6 7 8 9 10 11 12 k. Record the cost of goods sold, as calculated on the cost of goods sold tab. Note: Enter debits before credits. Date Account Title Debit Credit May 31 Record entry Clear entry View general journal equirement General Journal General Ledger Trial Balance Raw Materials Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching Cost of Goods Sold Prepare journal entries for the month of May's transactions. View transaction list Journal entry worksheet < 1 ... 5 6 7 8 9 10 11 12 I. Record the sale of goods on account. Note: Enter debits before credits. Account Title Debit Credit Date May 31 Record entry Clear entry View general journal General Requirement General Cost of Raw Cost of Journal Cost of Trial Balance Ledger Materials Goods Mfg Goods Mfg Cutting Gross Profit Goods Sold Stitching Verify the ending balance in raw materials inventory. Enter the amount of materials used as negative Beginning Raw Materials Inventory Ees Materials available for use Ending raw material inventory < Trial Balance Cost of Goods Mfg Cutting > Cost of Goods Mfg Cutting - General Requirement Cost of General Cost of Trial Balance Raw Goods Mfg Goods Mfg Cost Journal Ledger Goods : Cutting Stitching Prepare a schedule of cost of goods manufactured for Stam Company for the month of Ma Materials Goods Mfg Goo Dates: Apr 30 ences Total manufacturing costs added during May Total cost of work in process Raw Materials Cost of Goods Mfg Stitching-> Cost of Goods Mfg Stitching General General Raw Requirement www Journal Trial Balance Ledger Ice Materials Goods Mfg Goods Mfg. Cutting Stitching Prepare a schedule of cost of goods manufactured for Stam Company for the month of Dates: Apr 30 Total manufacturing costs added during May Total cost of work in process < Cost of Goods Mfg Cutting Cost of Goods Sold > Ledger Cost of Cost of General General Trial Bala Raw Requirement Goods Mfg Goods Mfg Journal Trial Balance Ledger Materials Cutting stitching IG Calculate the value of cost of goods sold for the month of May. Ignore any over- calculation of cost of goods sold. Dates: Apr 31 Calculate cost of goods sold: Cost of goods available for sale Cost of goods sold General Requirement General Journal Trial Balance Raw Cost of Cost of Goods Mfg Goods Mfg Cutting Stitching ed9 Materials Calculate the value of gross profit for the month of May. Dates: Api Gross Profit nces < Cost of Goods Sold Gross Profit

 · Answer

No	Date	Account Title	Debit	Credit
1	May-31	Raw materials	140000
		Accounts payable		140000
2	May-31	Work in process-cutting	27500
		Raw materials		27500
3	May-31	Factory overhead	86400
		Raw materials		86400
4	May-31	Work in process-cutting	27100
		Work in process-stitching	108400
		Factory wages payable		135500
5	May-31	Factory overhead	59600
		Factory wages payable		59600
6	May-31	Factory wages payable	195100
		Cash		195100
7	May-31	Factory overhead	70000
		Other accounts		70000
8	May-31	Work in process-cutting (150% x $27500)	41250
		Work in process-stitching (120% x $108400)	130080
		Factory overhead		171330
9	May-31	Work in process-stitiching	306350
		Work in process-cutting		306350
10	May-31	Finished goods inventory	662630
		Work in process-stitiching		662630
11	May-31	Cost of goods sold	858480
		Finished goods inventory		858480
12	May-31	Accounts receivable	1176000
		Sales revenue		1176000

Beginning raw materials inventory	121000
Raw materials purchased	140000
Materials available for use	261000
Direct materials used	-27500
Indirect materials used	-86400
Ending raw material inventory	147100

Direct materials used	27500
Direct labor	27100
Factory overhead	41250

Total manufacturing costs added during May	95850
Add: Beginning work in process	273500
Total cost of work in process	369350
Less: Ending work in process	63000
Cost of goods manufactured	306350

Transferred in from cutting department	306350
Direct materials used	0
Direct labor	108400
Factory overhead	130080

Total manufacturing costs added during May	544830
Add: Beginning work in process	293300
Total cost of work in process	838130
Less: Ending work in process	175500
Cost of goods manufactured	662630

Calculate cost of goods sold:
Cost of goods manufactured	662630
Add: Beginning finished goods inventory	250100
Cost of goods available for sale	912730
Less: Ending finished goods inventory	54250
Cost of goods sold	858480

Gross Profit
Sales revenue	1176000
Less: Cost of goods sold	858480
Gross profit	317520

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GLO301 - Based on Problem 03-1A LO P1, P2, P3, P4 Stam Company manufactures soccer balls...

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