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. Raw materials Inventory Work in process Inventory-Cutting Work in process Inventory-Stitching Finished goods Inventory Beginning Inventory Ending Inventory $91,000 $ 110,200 213,500 145,500 233,300 113,200 54,100 42,250 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 Direct labor Direct labor-Cutting Direct labor-Stitching $110,000 26,000 $24,100 96,400 $ 64,800 58,400 64,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales 150% of direct materials used 120% of direct labor used $930,000 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. Hint Compute the total production costs in each department and then subtract the ending Inventory to get the amount transferred out of each department (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 2. Prepare May 31 Journal entries to record the following May activities: a. Raw materials purchases b. Direct materials used c. Indirect materials used d. Direct labor used e. Indirect labor used f. Other overhead costs paid in cash g. Overhead applied h. Goods transferred from Cutting to Stitching 1. Goods transferred from Stitching to finished goods J. Sales (on account) k. Cost of goods sold View transaction list Journal entry worksheet < 1 2 3 Record purchase of raw materials. 5 6 7 8 11 Note: Enter debits before credits. Date General Journal Debit Credit May 31