3 , . .._ __.._...._= ...._...._.._._ _,_,_..__ ._ .._- _,_.__.._.._ _._,_.__,__. .._..."1 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. In 1 of 2 Beginning Ending _ Inventory Inventory Raw materials inventory 5 76,000 $ 91,750 Work in process inventoryCutting 183,500 130,500 Work in process inventoryStitching 203,300 103,900 '5 Finished goods inventory 48,100 36,250 nts The following additional information describes the company's production activities for May. i 04:02:09 Direct materials . Raw materials purchased on credit $ 95,000 Sklpped Direct materials usedCutting 25,250 Direct materials usedStitching 0 Direct labor El Direct laborCutting S 22,600 sBook Direct laborStitching 90,400 Factory Overhead (Actual casts) E Indirect materials used 5 54,000 Print Indirect labor used 57,800 other overhead costs 61,000 IE Factory Overhead Rates eferences Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $ 816,000 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 (0) Cost of goods sold