0 Required information Problem 16-1A Production cost ow and measurement; journal entries LD P1, P2, P3, P4 {The following information applies to the questions dispfayed 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: Beginning Ending Inventory Inventory Work in process inventoryCutting 233,533 155,533 Work in process inventoryStitching 253,3 119,433 Finished goods inventory 55,133 46,253 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $123,333 Direct materials used-Cutting 26,533 Direct materials used-Stitching 3 Direct labor Direct labor-Cutting $ 25,133 Direct labor-Stitching 133,433 Total factory payroll paid {in cash) 184,333 Factory Dverhead (Actual costs] Indirect materials used $72,333 Indirect labor used 58,333 Other overhead costs 66,333 Factory Overhead Rates Cutting {153% of direct materials used} Stitching (123% of direct labor used} Sales $1,316,333 Problem 16-1A Part 1 Required: 1. Compute the amount of {a} production costs transferred from Cutting to Stitching. {In} production costs transferred from Stitching to nished goods. and [c] cost of goods sold. ___ __ __ _ ___ __- ammo _Wd _ \"mama __ View journal entryI worksheet / May 31 Raw materials inventory 120.000 Aocounts payable 120,000 I: May 3'1 Work in process inventoryCutting 26.500 Raw materials inventory 20,500 I May 31 Factory overhead 72.000 Raw materials inventory ?2.000 / May 3'1 Work in process inventoryCutting 25.100 Work in process inventoryStitching 100.400 Factory wages payable 125,500 I: May 31. Factory overhead 53.300 Factory wages payable 50,800 I: May 3'1 Factory wages payable 104.300 Cash 184,300 1: May 31 Factory oyerheoo 66.000 Other accounts 00.000 8 May 31 Work in process inventory-Cutting 39,750 Work in process inventory-Stitching 120,480 Factory overhead 160,230 9 May 31 Work in process inventory-Stitching Work in process inventory-Cutting 10 May 31 Finished goods inventory Work in process inventory-Stitching 11 May 31 Cost of goods sold Finished goods inventory 12 May 31 Accounts receivable 1,016,000 Sales 1,016,000