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 123,500 100,500 143,300 85,300 36,100 24,250 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 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhead (Actual costs). Indirect materials used $32,400 56,600 55,000 $65,000 23,750 8 $ 19,600 78,400 154,600 Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $576,000 < Previ 2 of 2 Next >