ork 0 Problem 20-1A Production cost flow and measurement; journal entries LO P1, P2, 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: Beginning Inventory $ 16,000 63,500 Ending Inventory $17,950 70,500 66,700 12,250 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 83,300 24,100 The following additional information describes the company's production activities for May. $ 35,000 22,250 Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,600 66,400 138,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other Overhead costs $ 10,800 55,400 49,000 Factory Overhead Rates Cutting (1501 of direct materials used) Stitching (1201 of direct laborused) Factory Overhead Rates Cutting (1508 of direct materials used) Stitching (1208 of direct labor used) Sales $336,000 Problem 20-1A Part 2 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage. (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, 0) goods transferred from Cutting to Stitching. C) goods transferred from Stitching to finished goods, (k) cost of goods sold, and () sales View ansaction line