Required information 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: Beginning Inventory $ 66,000 163,500 183,300 44,100 Ending Inventory $ 79,450 Raw materials inventory Work in process inventory-Cutting Work in process inventory-stitching Finished goods inventory 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 $ 46,800 57,400 59,e0e Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $736,000 View transaction list Record purchase of raw materials. 1 Record direct materials used in production. 2 3 Record indirect materials used in production. Record direct labor cost incurred, but not yet paid. 4 Record indirect labor cost incurred, but not yet paid 5 Record payment of total factory payroll. 6 Record other overhead costs incurred (credit Other 7 accounts). EX ***** View transaction list EX: Record other overhead costs incurred (credit Other accounts). 7 Record overhead applied at 150% of direct materials costs (Cutting) and 120 % of direct labor cost (Stitching). 9 Record the transferred costs of partially completed goods. 10 Record the transfer of completed products from production to finished goods inventory. 11 Record cost of goods sold for May. 12 Record the sale of finished goods