2. 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 Work in process inventory-Cutting Inventory Inventory 43,500 51,500 Work in process inventory-Stitching 63,300 60,500 Finished goods inventory 20,100 8,250 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) Factory Overhead (Actual costs) Indirect materials used $ 6,000 Indirect labor used Other overhead costs 55,000 47,000 $ 25,000 21,750 0 $ 15,600 62,400 133,000 Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $256,000 Required: Compute the amount of: (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and