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 153,500 115,500 Work in process inventory-Stitching 173,300 94,600 Finished goods inventory 42,180 30,250 The following additional information describes the company's production activities for May Direct materials Raw materials purchased on credit $ 80,000 Direct materials used-Cutting 24,500 Direct materials used-Stitching Direct labor Direct labor Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 21,100 84,400 162,700 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 43,200 57,200 58,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales 5696,000 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. (1) payment of factory payroll, (g) other overhead costs, (credit Other Accounts). (h) overhead applied, goods transferred from Cutting to Suitching. goods transferred from Suitching to finished goods, (k) cost of goods sold, and (l) sales Answer is complete but not entirely correct. No General Journal Debit Credit Date May 31 1 80.000 Raw materials inventory Accounts payable 80,000 N May 31 24,500 Work in process inventory-Cutting Raw materials inventory SIS 24,500 3 May 31 36,750 Factory overhead Raw materials inventory 36,750 X 4 May 31 21,100 Work in process inventory_Cutting Work in process inventory_Stitching Factory wages payable 0 84 400 105,500 5 May 31 Factory overhead Factory wages payable 57,200 >> 57 200 6 May 31 Factory wages payable Cash 162,700 162,700 . 7 May 31 S Factory overhead Other accounts 58 000 58.000 8 May 31 Work in process inventory-Cutting Work in process inventory-Sulching Factory overhead OOO 36,750 101 280 138,030 9 May 31 Work in process inventory-Sulching Work in process inventory-Cutting IS 120 350 120 350 10 May 31 Finished goods inventory Work in process inventory-Suching 384,730 384.730 11 May 31 > Cost of goods sold Finished goods inventory 396 580 > 396 580