Problem 03-1A 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: Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory 203,500 223,300 52,100 Ending Inventory 140,500 110,100 40,250 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 $105,000 25,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 23,600 94,400 176,200 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 61,200 58,200 63,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $896,000 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, () goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list View journal entry worksheet No Debit Credit Date May 31 1 General Journal Raw materials inventory Accounts payable 2 May 31 Work in process inventory-Cutting Raw materials inventory 3 May 31 Factory overhead Raw materials inventory 4 May 31 Work in process inventory-Cutting Work in process inventoryStitching Factory payroll payable 5 May 31 Factory overhead Factory payroll payable 6 May 31 Factory payroll payable Cash 7 May 31 Factory overhead Other accounts 8 May 31 Work in process inventory-Cutting Work in process inventoryStitching Factory overhead 9 May 31 Work in process inventory Stitching Work in process inventoryCutting 10 May 31 Finished goods inventory Work in process inventoryStitching 11 May 31 Cost of goods sold Finished goods inventory 12 May 31 Accounts receivable Sales