Sanders 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 $ $ Raw materials inventory 141,000 171,700 Work in process inventory- 313,500 65,000 Cutting Work in process inventory- 333,300 195,500 Stitching Finished goods inventory 290,100 62,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on $ credit 160,000 Direct materials used- 28,500 Cutting 0 Direct materials used- Stitching Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates $ 29,100 116,400 $ 100,800 60,400 74,000 (150% of direct materials used) (120% of direct labor used) Cutting Stitching Sales $ 1,396,000