Check [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 Beginning Inventory $ 31,000 93,500 Ending Inventory $ 36,400 85,500 113,300 76,000 18,250 30,100 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 $ 18,100 72,400 Factory Overhead (Actual costs). Indirect materials used Indirect labor used. Other overhead costs. Factory Overhead Rates Cutting Stitching Sales $ 50,000 23,000 $ 21,600 56,000 52,000 0 150% of direct materials used. 120% of direct labor used $ 456,000