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 163,588 120,588 Work in process inventory-stitching 183, 380 97,700 Finished goods Inventory 44,186 32,25 The following additional Information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 85,000 Direct materials used-cutting 24,75 Direct materials used-stitching 6 Direct labor Direct labor-cutting Direct labor-stitching Total factory payroll paid (in cash) $ 21,600 86,480 165,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 46,900 57.480 59,888 Factory Overhead Rates Cutting (15ex of direct materials used) Stitching (128% of direct labor used) Sales $736,eee 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. Work in Process (WIP) - Cutting Work in Process (WIP) - Stitching Finished Goods (FG)