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 Work in process inventory-Stitching Finished goods inventory 193,500 135,500, 213,300 50,100 107,000 38,250 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 $100,000 25,500 0 Direct labor Direct labor Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhead (Actual costs) Indirect materials used Indirect labor used other overhead costs Factory Overhead Rates Cutting Stitching $57,600 $8,000 62,000 $ 23,100 92,400 173, 500) (150% of direct materials used) (120% of direct labor used) Johal information describes the company's production activities for May. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching $100,000 25,500 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhead (Actual costs) Indirect materials used Indirect labor used other overhead costs $ 57,600 58,000 62,000 $ 23,100 92,400 173,500 Factory Overhead Rates Cutting (150% of direct materials used) Stitching Sales (120% of direct labor used) $856,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from S finished goods, and (c) cost of goods sold. 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 Work in Process (WIP)- Stitching Finished Goods (FG)