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 183,500 203,300 48,109 Ending Inventory 138,580 193,989 36,250 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 $ 95,000 25,250 Direct labor Direct labor-cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 22,600 90,400 170,800 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 54,000 57,800 61,000 Indirect labor used Other overhead costs 57,899 61,080 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $816,000 Problem 20-1A Part 1 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred fr finished goods, and (c) cost of goods sold. WIP - April 30 Direct labor - Cutting Y YYYYYYYYYYYYYYYY Direct materials - Cutting J Work in Process (WIP) - Cutting 183,500 22,600 WIP - May 31 25,250 33,900 265,250 Overhead - Cutting Prex 1 2 of 9 # Next > Check Required information 265,250 Work in Process (WIP) - Stitching Finished Goods (FG)