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 Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Inventory Inventory 103,500 90,500 123,300 79,100 32,100 20,250 The following additional information describes the company's production activities for May. Direct materials. Raw materials purchased on credit $ 55,000 23,250 0 Direct materials used-Cutting Direct materials used-Stitching 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 $25,200 56,200 53,000 $ 18,600 74,400 149,200 Factory Overhead Rates: Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $496,000