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: Work in process inventory-Cutting Work in process inventory-stitching Finished goods inventory Beginning Inventory 43,500 63,300 20,100 Ending Inventory 51,500 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 $ 25,000 21,750 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 (150% of direct materials used) Stitching (120% of direct labor used) Sales $256,000 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. Ignore any over- or under-applied overhead in the calculation of cost of goods sold. Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $256,000 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. Ignore any over- or under-applied overhead in the calculation of cost of goods sold. Direct labor - Cutting Direct materials - Cutting WIP - April 30 Overhead - Cutting Work in Process (WIP) - Cutting 15,6001 21,750 43,500 32,625 113,475 WIP - April 30 Direct labor - Stitching Overhead - Stitching Work in Process (WIP) - Stitching 63,300 62,400 74,880 200,580 Finished Goods (FG) FG - April 30 C of GM - Stitching