Required information Problem 20-1A 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 Ending Inventory Inventory Work in process inventory-cutting 173,500 125,500 Work in process inventory-stitching 193,300 100,800 Finished goods inventory 46,100 34,250 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 $ 90,000 25,000 0 Direct labor Direct labor-cutting Direct labor-stitching Total factory payroll paid (in cash) $ 22,100 88,400 168, 100 Factory Overhead (Actual costa) Indirect materials used Indirect labor used Other overhead coats $50,400 57,600 60.000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (1201 of direct labor used) Sales 5776,000 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. Work in Process (WIP). Cutting Overhead - Cutting 294,000 Direct materials - Cutting Direct labor. Cutting Overhead - Cutting 132,600 455,400 Work in Process (WIP) - Stitching Finished Goods (FG) Required information -- 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. (0 payment of factory payroll. (a) other overhead costs. (credit Other Accounts). (h) overhead applied, (goods transferred from Cutting to Stitching, U) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list Journal entry worksheet 1 2 3 4 5 6 6 7 8 ... 12 Record purchase of raw materials. Note: Enter debits before credits Date General Journal May 31 Debit Credit