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 43,500 51,500 Work in process inventory-Stitching 63,300 60,500 Finished goods inventory 20, 100 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 $ 25,000 21, 750 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 15,600 62,400 133,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 47,000 Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $256,000 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. Ignore any over- or under-applied overhead in the calculation of cost of goods sold. Work in Process (WIP) - Cutting 43,500 WIP - May 31 21,750 Cost of goods sold 15,600 32,625 WIP - April 30 Direct materials - Cutting Direct labor - Cutting Overhead - Cutting 61,975 51,500 60,500 WIP - April 30 C of GM - Cutting Direct labor - Stitching Overhead - Stitching Work in Process (WIP) - Stitching 63,300 61,970 WIP - May 31 62,400 74,880 202,050 Finished Goods (FG) FG - April 30 WIP - April 30 WIP - May 31 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list Journal entry worksheet Record purchase of raw materials. Note: Enter debits before credits. Date General Journal Debit Credit May 31