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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

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 InventoryEnding InventoryRaw materials inventory$ 76,000$ 91,750Work in process inventoryCutting183,500130,500Work in process inventoryStitching203,300103,900Finished goods inventory48,10036,250The following additional information describes the company's production activities for May.Direct materials Raw materials purchased on credit$ 95,000Direct materials usedCutting25,250Direct materials usedStitching0Direct labor Direct laborCutting$ 22,600Direct laborStitching90,400Factory Overhead (Actual costs) Indirect materials used$ 54,000Indirect labor used57,800Other overhead costs61,000Factory Overhead Rates Cutting150% of direct materials usedStitching120% of direct labor used Sales$ 816,0002. Prepare May 31 journal entries to record the following May activities:Raw materials purchasesDirect materials usedIndirect materials usedDirect labor usedIndirect labor usedOther overhead costs paid in cashOverhead appliedGoods transferred from Cutting to StitchingGoods transferred from Stitching to finished goodsSales (on account)Cost of goods sold

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