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 113,500 133, 300 34,100 Ending Inventory 95,500 82,200 22,250 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 $ 60,000 23,500 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 19,100 76,400 151,900 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 28,800 56,400 54,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $536,000 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. Work in Process (WIP) - Cutting WIP - April 30 Work in Process (WIP) - Stitching Finished Goods (FG) 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, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (1) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list X 1 Record purchase of raw materials. 12 2 Record direct materials used in production. 3 Record indirect materials used in production. 4 Record direct labor cost incurred, but not yet paid. 5 Record indirect labor cost incurred, but not yet paid. Credit 6 Record payment of total factory payroll. 7 Record other overhead costs incurred (credit Other