ces 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 Mork in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory $106,000 $128,650 243,500 160,500 263,300 122,500 60,100 48,250 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 $ 125,000 26,750 Direct labon-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used other overhead costs Factory Overhead Rates Cutting Stitching Sales $25,600 102,400 $75,600 59,000 67,000 15% of direct eaterials used 120% of direct labor used $1,056,000 Problem 20-5A (Algo) Part 1 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (o) 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 transfered out of each department. Transferred to work in process-stching (b) Transferred to finished goods (Cost of goods sold