2 Part 1 of 2 Required information 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: 16 points eBook Beginning Ending InventoryInventory Work in process inventory- Cutting 183,500 130,500 Work in process inventory- 203,300 103,900 Stitching Finished goods inventory 48, 100 36, 256 Print Reference The following additional Information describes the company's production activities for May Direct materials Raw materials purchased on credit $95,000 Direct materials used- Cutting 25, 250 Direct materials used- Stitching Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 22,600 90,480 170, 800 Factory Overhead (Actual costs) Indirect materials used $54,000 Indirect labor used 57,800 Other overhead costs 61,000 Factory Overhead Rates Cutting (150% of direct materials used Stitching (1284 of direct labor) used Sales $816,000 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. 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 WIP - May 31 Work in Process (WIP) - Cutting 183,500 C of GM - Cutling 25,250 22.000 231,350 Work in Process (WIP) - Stitching 203,300 WIP - April 30 of GM-Cutting Direct labor - Stitching Overhead - Stitching WIP - May 31 90,400 108,480 402.180 Finished Goods (FG) 48,100 Cost of goods sold iFG - April 30 C of GM - Stitching FG - May 31 48,100