Required information Problem 16-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 Skip to question [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 Work in process inventoryCutting 53,500 65,500 Work in process inventoryStitching 73,300 63,600 Finished goods inventory 22,100 10,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 30,000 Direct materials usedCutting 22,000 Direct materials usedStitching 0 Direct labor Direct laborCutting $ 16,100 Direct laborStitching 64,400 Total factory payroll paid (in cash) 135,700 Factory Overhead (Actual costs) Indirect materials used $ 7,200 Indirect labor used 55,200 Other overhead costs 48,000 Factory Overhead Rates Cutting (150% of direct materials used ) Stitching (120% of direct labor used ) Sales $296,000 rev: 01_28_2020_QC_CS-197408 Problem 16-1A Part 2 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (l) sales.