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Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are...

Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories

Beginning
Inventory
Ending
Inventory
Raw materials inventory $64,000 $45,000
Work in process inventory 412,000 593,000
Finished goods inventory 630,000 597,000


The following additional information describes the company's production activities for May.

Raw materials purchases (on credit) $260,000
Factory wages cost (paid in cash) 1,542,000
Other overhead cost (Other Accounts credited) 47,000
Materials used
Direct $191,000
Indirect 88,000
Labor used
Direct $780,000
Indirect 762,000
Overhead rate as a percent of direct labor 115%
Sales (on credit) $6,500,000


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

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) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.

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