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.

Problem 20-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 [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: Beginning Ending InventoryInventory Work in process inventory- 243,500 160,500 Cutting Work in process inventory- 263,300 122,500 Stitching Finished goods inventory 60, 100 48, 250 The following additional information describes the company's production activities for May. $125,000 Direct materials Raw materials purchased on credit Direct materials used- Cutting Direct materials used- Stitching 26,750 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 25,600 102,400 187,000 Factory Overhead (Actual costs) Indirect materials used $75,600 Indirect labor used 59,000 Other overhead costs 67,000 Factory Overhead Rates Cutting (150% of direct) materials used Stitching (120% of direct labor Sales $1,056,000 used' Problem 20-1A Part 1 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. WIP - April 30 Direct materials - Cutting Direct labor - Cutting Overhead - Cutting Work in Process (WIP) - Cutting 243,500 C of GM - Cutting 26,750 25,600 40,125 335,975 Work in Process (WIP) - Stitching C of GM - Stitching WIP - April 30 C of GM - Cutting Direct labor - Stitching Overhead - Stitching Finished Goods (FG) Cost of goods sold FG - April 30 C of GM - Stitching FG - May 31