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Chapter 3 Homework Saved Beginning Ending Inventory Inventory Raw materials inventory $ 21,009 $ 24, 100 Work in process inventory Cutting 73,500 75,500 Work in process inventory-Stitching 93,300 69,800 Part 1 of 2 Finished goods inventory 26, 109 14,250 The following additional information describes the company's production activities for May. 2.85 Direct materials points Raw materials purchased on credit $ 40,090 Direct materials used Cutting 22,503 Direct materials used-Stitching Direct labor eBook Direct labor Cutting $ 17,109 Direct labor-Stitching 68,400 Print Factory Overhead (Actual costs) Indirect materials used $ 14,400 Indirect labor used 55,600 Other overhead costs 50,000 References Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $376,090 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. (a) Transferred to work in process-Stitching 71,350 (b) Transferred to finished goods (c) Cost of goods sold Mc Graw Hill