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. Beginning Inventory Ending Inventory 153,500 115,500 173,300 94,600 42,100 30,250 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 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 $ 80,000 24,500 e Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash)) Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 43,200 57,200 58,000 $ 21,100 84,400 162,700 (150% of direct materials used) (120% of direct labor used) $696.000