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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

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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 143,500 110,500 Work in process inventory-Stitching 163,300 91,500 Finished goods inventory 40,100 28,250 The following additional information describes the company's production activities for May Direct materials Raw materials purchased on credit $ 75,000 Direct materials used-Cutting 24,250 Direct materials used-Stitching @ Direct labor Direct labor-cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 20,600 82,400 160,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 39,600 57,000 57,900 Factory Overhead Rates Cutting (1589 of direct materials used) Stitching (120% of direct labor used) Sales $656,000 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) C of GM - Cutting C of GM - Stitching Cost of goods sold Direct labor - Cutting Dr! Direct labor - Stitching Direct materials - Cutting Direct materials - Stitching FG - April 30 FG - May 31 Indirect labor used Indirect materials used Other overhead costs Overhead - Cutting Overhead - Stitching RM - April 30 RM - May 31 RM purchases Sales Total factory payroll Underapplied overhead - Cutting Underapplied overhead - Stitching Total factory payroll Underapplied overhead - Cutting Underapplied overhead - Stitching WIP - April 30 prk i WIP - May 31

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