Problem 16-1A 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: Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory $ 66,000 163,500 183,300 44,100 Ending Inventory $ 79,450 120,500 97,700 32,250 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 $ 85,000 24,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 21,600 86,400 165,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 46,800 57,400 59,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $736,000 0 & Compute the amount of the production costs tansterred from Cutting to seaching finished goods and cost of goods sold production costs trans Wines WIP Cung