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 Inventory			Ending Inventory
Work in process inventoryCutting		83,500			80,500
Work in process inventoryStitching		103,300			72,900
Finished goods inventory		28,100			16,250

The following additional information describes the company's production activities for May.

Direct materials
Raw materials purchased on credit	$	45,000
Direct materials usedCutting		22,750
Direct materials usedStitching		0

Direct labor
Direct laborCutting	$	17,600
Direct laborStitching		70,400
Total factory payroll paid (in cash)		143,800

Factory Overhead (Actual costs)
Indirect materials used	$	18,000
Indirect labor used		55,800
Other overhead costs		51,000

Factory Overhead Rates
Cutting	(150% of direct materials used			)
Stitching	(120% of direct labor used			)
Sales	$416,000

rev: 01_28_2020_QC_CS-197408

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.

Here is the list.

• 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
• WIP - April 30
• WIP - May 31

Work in Process (WIP) - Cutting WIP - April 30 Direct materials - Cutting Direct labor - Cutting Work in Process (WIP) - Stitching Finished Goods (FG) WIP - May 31 Wor! Direct materials - Cutting hie labar Cuttina C of GM - Cutting C of GM - Stitching Cost of goods sold Direct labor - Cutting ork 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, 0) goods transferred from Cutting to Stitching, (1) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list Journal entry worksheet Record other overhead costs incurred (credit Other accounts). Note: Enter debits before credits. General Journal Debit Credit Date May 31 Journal entry worksheet Record the sale of finished goods. Note: Enter debits before credits. Date General Journal Debit Credit May 31