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 Ending Inventory Inventory Work in process inventory-Cutting 173,500 125,500 Work in process inventory-stitching 193,300 100,800 Finished goods inventory 46,100 34,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $90,000 Direct materials used-cutting 25,000 Direct materials used-Stitching Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 22,100 88,400 168, 100 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $50,400 57,600 60,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120) of direct labor used) Sales $776,000 Problem 03-1A Part 1 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. WIP - April 30 Direct materials - Cutting Direct labor. Cutting Overhead - Cutting WIP - May 31 Work in Process (WIP) - Cutting 173,500 C of GM - Cutting 25,000 22,100 280,600 Work in Process (WIP) - Stitching Finished Goods (FG)