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 Inventory Ending Inventory 213,500 233,300 54,100 145,500 113,200 42,250 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 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 $110,000 26,000 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 Sales $ 64,800 58,400 64,000 $ 24,100 96,400 178,900 (150% of direct materials used) (120% of direct labor used) $936,000 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 Work in Process (WIP) - Stitching Finished Goods (FG) Work in Pro C of GM Cutting C of GM Stitching Cost of goods sold Direct labor- Cutting Direct labor Stitching ork in Proce Finished Direct materials - Cutting Direct materials - Stitching FG - April 30 FG - May 31 Indirect labor used Work ork in Fi Indirect materials used Other overhead costs Overhead Cutting - Overhead - Stitching RM - April 30 ork in RM - May 31 RM purchases Sales Total factory payroll Work lork in Underapplied overhead Cutting Undersealind vorhand Stitching Total factory payroll Underapplied overhead - Cutting Underapplied overhead - Stitching WIP April 30 WIP - May 31 Work Lork in Fir