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 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory 173,500 193,300 46,100 Ending Inventory 125,500 100,800 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 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 22,100 88,400 168, 100 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 50,400 57,600 60,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $776,000 Required information Cash > 168,100 7 May 31 60,000 Factory overhead Other accounts 60,000 8 May 31 Work in process inventory-Cutting Work in process inventory-Stitching Factory overhead 37,500 106,080 OO 9 May 31 Work in process inventory-Stitching Work in process inventory-Cutting 10 May 31 Finished goods inventory Work in process inventory Stitching 11 May 31 Cost of goods sold Finished goods inventory >S 12 May 31 Accounts receivable Sales 776,000 O 776 000