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: Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Ending Inventory Inventory $ 6,000 $ 9,250 43,500 51,500 63,30060, 500 20,100 8,250 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 $ 25,000 21,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 15,600 62,400 133,000 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 6,000 55,000 47,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $256,000 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. Ignore any over- or under-applied overhead in the calculation of cast of goods sold. Raw Materials (RM) Work in Process (WIP) - Cutting Work in Process (WIP) - Stitching Factory Wagos Payable Factory Overhead Finished Goods (FG) Income Statement (Partial) Cost of goods transferred to Finished Goods Cost of goods sold C of GM - Cutting C of GM - Stitching Cost of goods sold Direct labor - Cutting Direct labor - Stitching Direct materials - Cutting Direct materials - Stitching FG - April 30 FG - May 31 Indirect labor used Indirect materials used Other overhead costs Overhead - Cutting Overhead - Stitching RM - April 30 RM - May 31 RM purchases Sales Total factory payroll Underapplied overhead - Cutting Underapplied overhead - Stitching