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 Raw materials inventory $ 6,000 $ 3.250 Work in process inventory-Cutting 43-500 51.500 Work in process inventory-Stitching 63,300 60,500 Finished goods inventory 20,100 8,250 Direct Materials Raw materials purchased on credit $ 25,000 Direct materials used-Cutting 21,750 Direct mterials used-Stitching Direct Labor Direct labor-Cutting $ 15,600 Direct labor-Stitching 62,400 Total factory payroll paid (in cash) 133,000 Factory Overhead (actual costs) Indirect materials used $6,000 Indirect labor used 55,000 Other overhead costs 47,000 Factory Overhead Rates Cutting 150% of direct materials used Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $256,000 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. Check (1g Cost of goods sold, $213.905 2. Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, () payment of factory payroll, (g) other overhead costs (credit Other Accounts), (h) overhead applied, (1) goods transferred from Cutting to Stitching, () goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales.