Panzarella 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: Ending Inventory Beginning Inventory $ 146,000 $ 177,850 323,500 65,500 200,500 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 343,300 300,100 64,250 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 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 $ 165,000 28,750 0 $ 29,600 118,400 $ 104,400 60,600 75,000 (150% of direct materials used) (120% of direct labor used) Sales $ 1,456,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit