Required information [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 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Ending Inventory Inventory 53,500 65,500 73,300 63,600 22,100 10,250 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 $ 30,000 22,000 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhead (Actual costs) Indirect materials used $ 7,200 Indirect labor used 55,200 Other overhead costs 48,000 Factory Overhead Rates Cutting Stitching Sales $ 16,100 64,400 135,700 (150% of direct materials used) (120% of direct labor used) $296,000 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 Work in Process (WIP) - Stitching Finished Goods (FG)) Journal entry worksheet < 1 2 3 4 5 6 7 8 ..... 12 Record purchase of raw materials. Note: Enter debits before credits. Date May 31 General Journal Debit Credit Record entry Clear entry View general journal