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 $ 46,000 123,500 143,300 36,100 Ending Inventory $ 54,850 100, 500 85,300 24,250 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 $ 65,000 23,750 0 Direct labor Direct labor-Cutting Direct labor-Stitching $ 19,600 78,400 Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 32,400 56,600 55,000 Factory Overhead Rates Cutting Stitching 150% of direct materials used 120% of direct labor used Sales $ 576,000 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 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 $ 46,000 123,500 143,300 36,100 Ending Inventory $ 54,850 100,500 85,300 24,250 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 $ 65,000 23,750 Direct labor Direct labor-Cutting Direct labor-Stitching $ 19,600 78,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 32,400 56,600 55,000 Factory Overhead Rates Cutting Stitching 150% of direct materials used 120% of direct labor used Sales $ 576,000 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 i. Goods transferred from Stitching to finished goods 1. Sales (on account) k. Cost of goods sold