14 Part1of2 _ 12 polnts References Required information {The foiiowing infomation appiies to the questions dispiayed below} Sierra Companyr manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning ofthe cutting process. The following information is available regarding its May inventories. Beginning Ending Inventory Inventory Raw materials inventory $ 66,000 $ 79,450 Work in process inventoryCutting 163,500 120,500 Work in process inventoryStitching 133,300 97,700 Finished goods inventory 44,100 32,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 35,000 Direct materials used-Cutting 24,750 Direct materials usedStitching 0 Direct labor Direct laborCutting $ 21,600 Direct laborStitching 36,400 Factory Overhead [Actual costs) Indirect materials used S 46,300 Indirect labor used 57,400 Other overhead costs 59,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $ 736,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to nished 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. (a) Transferred to work in processStitching (b) Transferred to nished goods (6,] Cost of goods sold 15 Required information Part 2 of 2 [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. 2 point Beginning Ending Inventory Inventory Raw materials inventory $ 66,000 $ 79,450 Work in process inventory Cutting 163,500 120,500 Work in process inventory Stitching 183,300 97, 700 cBook Finished goods inventory 44 ,100 32 , 250 The following additional information describes the company's production activities for May. Print Direct materials Raw materials purchased on credit $85,000 Direct materi 24 750 References Direct materials used Stitching Direct labor Direct lab 21, 600 Direct labor Stitching 86, 400 Factory Overhead (Actual costs) Indirect materials used Todirect labor used 46,800 57 , 400 Other overhead costs 89 000 Factory Overhead Rates 150% of direct materials used stitching 1208 of direct labor used Sales $ 736, 000 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materials used c. Indirect materials used d. Direct labor used e. Indirect labor used f. Other overhead costs paid in cash g. Overhead applied h. Goods transferred from Cutting to Stitching i. Goods transferred from Stitching to finished goods . Sales (on account) k. Cost of goods sold View transaction list Journal entry worksheet 1 2 3 5 6 7 8 . .. .. 1 Record purchase of raw materials. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record entry Clear entry View general journal