Required information {The foliowing information applies to the questions dispiayed beiontj Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning ofthe cutting process. The following information is available regarding its May inventories. Beginning Ending Inventory Inventory Raw materials inventory 8 88,888 5 118,358 Work in process inventoryCutting 223,588 158,588 Work in process inventoryStitching 243,388 116,388 Finished goods inventory 55,188 44,258 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit 5 115,888 Direct materials usedEutting 28,258 Direct materials usedStitching 8 Direct labor Direct laborCutting 5 24,888 Direct laborStitching 98,488 Factory Overhead (Actual costs) Indirect materials used 5 68,488 Indirect labor used 58,888 Other overhead costs 65,888 Factory Overhead Rates Cutting 15896 o-F direct materials used Stitching 128% of direct labor used Sales 5 9?6,888 Required: 1. Compute the amount of (a; production costs transferred from Cutting to Stitching. {bi production costs transferred from Stitching to finished goods, and {c} cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department [oi Transferred to I.vorit in processStitching {or Transferred to nished goods is} Cost of goods sold