Value of Gross Profit Assignment

Clancy 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 Ending Inventory $140,950 62,500 170,50e0 52,250 Beginning Inventory $116,00e Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 263,500 283,300 240,100 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 $135,000 27,250 Direct labor Direct labor-Cutting direct labor-stitching Total factory payroll paid (in cash) $ 26,600 106,400 192,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs s 82,800 59,400 69.e00 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 82,800 59,400 69,000 Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $1,136,000

a. Record the purchase of materials (on credit) Note: Enter debits before credits. Date Account Title Debit Credit May 31 b.Record direct materials used in production. Note: Enter debits before credits. Date Account Title Debit Credit May 31 c. Record the usage of indirect materials. Note: Enter debits before credits. Date Account Title Debit Credit May 31 d. Record the cost of direct labor incurred but not yet paid. (Use “Factory wages payable” account). Note: Enter debits before credits. Date Account Title Debit Credit May 31 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 f. Record the payment of the total factory payroll. Note: Enter debits before credits. Date Account Title Debit Credit May 31 We were unable to transcribe this image. 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 i. Record the transferred costs of partially completed goods. Note: Enter debits before credits. Account Title Date Debit Credit May 31 j. Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab. Note: Enter debits before credits. Date Account Title Debit Credit May 31 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 I. Record the sale of goods on account. Note: Enter debits before credits. Date Account Title Debit Credit May 31 We were unable to transcribe this imageApr 29 420,000 Apr 30 96,000 Raw materials inventory Work in process inventory-Stitching No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 29 116,000 283,300 Finished goods inventory Work in process inventory-Cutting No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 29 240,100 263,500 Factory Equipment Accumulated depreciation- Factory equipment No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 29 135,000 Apr 29 27,000 Accounts payable Common stock, $5 par value No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 30 1,075,600 Apr 29 74,000 Paid-in capital in excess of par – Common Retained earnings No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 30 68,000 Apr 30 309,300 Dates: Apr 30 to: Apr 30 Clancy Company Trial Balance April 30, 2018 Credit Account Title Debit Cash $ 420,000 Accounts receivable 96,000 116,000 283,300 Raw materials inventory Work in process inventory-Stitching Finished goods inventory Work in process inventory-Cutting Factory Equipment Accumulated depreciation – Factory equipment Accounts payable Common stock, $5 par value Paid-in capital in excess of par-Common Retained earnings 240,100 263,500 135,000 27,000 1,075,600 74.000 68,000 309.300 1.553,900 S 1.553 900 Total Verify the ending balance in raw materials inventory. Enter the number of materials used as negative values. Beginning Raw Materials Inventory Materials available for use Ending raw material inventory Sutchang Prepare a schedule of cost of goods manufactured for Clancy Company for the month of May Dates: Apr 30 to Apr 30 Total manufacturing costs added during May Total cost of work in process to Apr 30 Dates: Apr 30 Total manufacturing costs added during May Total cost of work in process Calculate the value of cost of goods sold for the month of May. Ignore any over or underapplied overhead in the calculation of the cost of goods sold. Dates: Apr 30 to Apr 30 Calculate cost of goods sold: Cost of goods available for sale Cost of goods sold Calculate the value of gross profit for the month of May. Dates: Apr 30 to: Apr 30 Gross Profit,