20: Homework-GRADED i 2 Part 1 of 2 4.28 points eBook Print References Required information Problem 20-5A (Algo) Production cost flow and measurement; journal entries LO 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. Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Direct labor Direct labor-Cutting Direct labor-Stitching The following additional information describes the company's production activities for May Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 25,600 102,400 Problem 20-5A (Algo) Part 1 Beginning Inventory $ 106,000 243,500 263,300 60,100 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $ 125,000 26,750 0 Ending Inventory $ 128,650 $ 75,600 59,000 67,000 160,500 122,500 48,250 150% of direct materials used 120% of direct labor used Saved $ 1,056,000 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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department.

Required information Problem 20-5A (Algo) Production cost flow and measurement; journal entries LO P3, P4 [The following information applies to the questions displayed below] Sierta Company manufactures soccer balis in two sequential processes: Cutting and Stitching. All cirect materials enter production at the beginning of the curting process. The following information is avallable regarding its May inventories. The following additional information describes the company's production activities for May Problem 20-5A (Algo) Part 1 Pequired: 1. Compute the amount of (a) productian costs thansferred trom Cutting to Stitching. (0) production costs transferred fiom 5 thching to 1. Compote the goods, and (c) cost of goods sold. Hint Compute the total peoduction costs in each department and then subtract the ending inventory to get the amount transferred out of esch department