F2 ok K ht nces 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 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching The following additional information describes the company's production activities for May. $ 16,100 64,400 Sales Beginning Inventory $ 11,000 53,500 73,300 22,100 $ 30,000 22,000 0 $ 7,200 55,200 48,000 Ending Inventory $ 11,800 65,500 63,600 10,250 Saved 150% of direct materials used 120% of direct labor used $ 296,000

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. The following additional information describes the company's production activities for Mary. Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching. (b) production costs transferred from Stitching fo 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 transferted out of each department