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 Inventory Ending Inventory Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory $ 6,000 43,500 $ 9,250 51,500 63,300 20,100 60,500 8,250 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 $ 25,000 21,750 0 Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 15,600 62,400 $ 6,000 55,000 46,505 150% of direct materials used 120% of direct labor used $ 256,000