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 Inventory Inventory Work in process Inventory-Cutting 163,500 120,580 Work in process Inventory-Stitching 183, 380 97,700 Finished goods Inventory 44,100 32,25e 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 $ 85,000 24,750 B Direct labor Direct labor-Cutting Direct labor-stitching Total factory payroll paid (in cash) $ 21,600 86,480 165, 480 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 46,880 57,480 59,000 Factory Overhead Rates Cutting (158% of direct materials used) Stitching (120% of direct labor used) Sales $736, eee Problem 03-1A Part 1 Required: 1. Compute the amount of (a) production costs transferred from Cutung to Stitching. () production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Work in Process (WIP) - Cutting Work in Process (WIP) - Stitching Finished Goods (FG)