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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department. 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. The following additional information describes the company's production activities for May. Direct labor Direct labor-Cutting $16,100 Direct labor-5titching 64,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $7,200 55,200 48,000 Factory overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $296,000