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Required information [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. Beginning Ending Inventory Inventory Raw materials inventory $ 26,000 $ 30,250 Work in process inventory-Cutting 83,500 80,500 Work in process inventory-Stitching 103,300 72,900 Finished goods inventory 28,100 16,250 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 $ 45,000 22,750 0 Direct labor Direct labor-Cutting $ 17,600 Direct labor-stitching 70,400 Factory Overhead (Actual costs) Indirect materials used $ 18,000 Indirect labor used 55,800 Other overhead costs 51,000 Factory Overhead Rates Cutting Stitching 1508 of direct materials used 1206 of direct labor used Sales $ 416.000 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 proces --Stitching (b) Transferred to finished goods (c) Coot of goods sold Cutting Stitching 1508 of direct materials used 1207 of direct labor used Sales $ 416,000 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materials used c. Indirect materials used d. Direct labor used e. Indirect labor used f. Other overhead costs paid in cash g. Overhead applied h. Goods transferred from Cutting to Stitching 1. Goods transferred from Stitching to finished goods J. Sales (on account) k. Cost of goods sold View transaction list Journal entry worksheet Record purchase of raw materials, Note: Enter debits before credits