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 Ending Inventory Inventory Work in process inventory-Cutting 223, 500 150, 500 Work in process inventory-Stitching 243, 300 116, 300 Finished goods inventory 56, 100 44, 250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 115, 000 Direct materials used-Cutting 26, 250 Direct materials used-Stitching Direct labor Direct labor-Cutting $ 24, 600 Direct labor-Stitching 98, 400 Total factory payroll paid (in cash) 181, 600 Factory Overhead (Actual costs) Indirect materials used $ 68, 400 Indirect labor used 58, 600 Other overhead costs 65, 000Direct neterials used'Cutting 26,250 Direct neterials used'Stitching 0 Direct labor Direct laber'Cutting $ 24,600 Direct laber'Stitching 98, 400 Total factory payroll paid (in cash) 181,600 Factory Overhead (Actual costs) Indirect materials used 3 68, 400 Indirect labor used 58,600 Other overhead costs 65,000 Factory Overhead Rates Cutting (150% of direct neterials used) Stitching (120% of direct 1aber used) Sales $976,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, ([3) production costs transferred from Stitching to finished goods. and (c) cost of goods sold. eii iii_i _iii_i i_ii_i 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 WIP - April 30 223,500 C of GM - Cutting Direct materials - Cutting 26,250 Direct labor - Cutting 24,600 Overhead - Cutting 39,375 WIP - May 31 313,725 Work in Process (WIP) - Stitching WIP - April 30 243,300 C of GM - Stitching C of GM - Cutting Direct labor - Stitching 98,400 Overhead - Stitching 118,080 WIP - May 31 459,780 Finished Goods (FG) FG - April 30 Cost of goods sold C of GM - Stitching FG - May 31Required information Direct materials - bunny 20, 2JU Direct labor - Cutting 24,600 Overhead - Cutting 39,375 WIP - May 31 313,725 Work in Process (WIP) - Stitching WIP - April 30 243,300 C of GM - Stitching C of GM - Cutting Direct labor - Stitching 98,400 Overhead - Stitching 118,080 WIP - May 31 459,780 Finished Goods (FG) FG - April 30 Cost of goods sold C of GM - Stitching FG - May 31