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: Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory 133,500 105,500 153,300 88,400 38, 100 26,250 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 $ 70,000 24,000 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 20,100 80,400 157,300 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 36,000 56,800 56,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $616,000 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 24,000 Direct materials - Cutting C of GM - Cutting 24,000 Work in Process (WIP) - Stitching Finished Goods (FG) 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. X Answer is not complete. No Date General Journal Debit Credit 1 May 31 70,000 Raw materials inventory Accounts payable 70,000 2 May 31 24,000 Work in process inventoryCutting Raw materials inventory 24,000 3 May 31 Factory overhead 36,000 Raw materials inventory 36,000 4 May 31 20,100 Work in process inventoryCutting Work in process inventoryStitching Factory wages payable 80,400 100,500 5 May 31. 56,800 Factory overhead Factory wages payable 56,800 6 May 31 Factory wages payable 157,300 Cash 157,300 7 May 31 Factory overhead 56,000 Other accounts 56,000 8 May 31 36,000 Work in process inventory-Cutting Work in process inventoryStitching Factory overhead 96,480 132,480 9 May 31 28,000 Work in process inventory-Cutting Work in process inventory_Stitching 28,000 X 10 May 31 26,250 X Finished goods inventory Work in process inventoryStitching 26,250 X 11 May 31 Cost of goods sold Cinichodannde inventor