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:

The following additional information describes the company's production activities for May.

Direct materials

Raw materials purchased on credit $$25,000$

Direct materials used$-$Cutting $21,750$

Direct materials used$-$Stitching $0$

Direct labor

Direct labor$-$Cutting $$15,600$

Direct labor$-$Stitching $,62,400$

Factory Overhead $($Actual costs$)$

Indirect materials used $$6,000$

Indirect labor used $,55,000$

Other overhead costs $46,505$

Factory Overhead Rates

Cutting

$(150\%$ of direct materials used$)$

Stitching

$(120\%$ of direct labor used$)$

Sales

$$256,000$