11 Part 1 of 2 0.58 points eBook Required information [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: Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory Ending Inventory 93,500 85,500 113,300 76,000 30,100 18,250 Print References 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 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $50,000 23,000 0 $ 18,100 72,400 146,500 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 21,600 56,000 52,000 (150% of direct materials used) Factory Overhead Rates Cutting Stitching Sales (120% of direct labor used) $456,000 Check my work 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. Work in Process (WIP) - Cutting WIP - April 30 C of GM - Cutting Direct materials - Cutting Overhead - Cutting 113,300 C of GM - Stitching