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: Work in process inventory-Cutting Work in process inventory Stitching Finished goods inventory Beginning Ending Inventory Inventory 223,500 150,500 243, 300 116,300 56,100 44,250 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 $115,000 26,250 Prev 1 2 of 4 Next > h O > work Soved Help Soy The following additional information describes the company's production activities for May Direct materials Raw materials purchased on credit $115,000 Direct materials used-Cutting 26,250 Direct materials used-stitching e Direct labor Direct labor-Cutting Direct labor-stitching Total factory payroll paid (in cash) $ 24,600 98,400 181,6ee Factory Overhead (Actual costs) Indirect materials used Indirect labor used other overhead costs $ 68,400 58,600 65,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $976,000 Prev 1 2 of 4 Next > Problem 16-1A 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 WIP. April 30 Direct materials - Cutting Direct labor - Cutting Overhead Cutting WIP. May 31 Work in Process (WIP). Cutting 223,500 C of GM - Cutting 26,250 24,600 39,375 313,725 Work in Process (WIP) - Stitching 243.300 CGM - Sitching WIP - April 30 C of GM - Cutting Prev co 1 2 of 4 Next > to search ORI Required information Wir - My to2 Work in Process (WIP) -Stitching 243.300 C of GM Stitching TWIP - April 30 C of GM - Cutting Direct labor - Stitching Overhead - Sitching WIP - May 31 98,400 118.080 459,780 Door once FG - April 30 C of GM - Sitching Finished Goods (FG) 56,100 Cost of goods sold FG - May 31 56,100