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 233,500 155,500 253,300 119,400 58,100 46,250 Work in process inventory-cutting Work in process inventory-stitching Finished goods inventory 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 $120,000 26,500 0 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 25, 100 100,400 184,300 Factory Overhead (Actual costs) Indirect materials used Indirect laborused Other overhead costs $72,000 58,800 66,000 Factory Overhead Rates Cutting (1501 of direct materials used) Stitching (1208 of direct labor used) Sales $1,016,000 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 Work in Process (WIP) - Stitching Finished Goods (FG) 2 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. ( payment of factory payroll, (g) other overhead costs, (credit Other Accounts). (h) overhead applied, goods transferred from Cutting to Stitching, goods transferred from Stitching to finished goods, (k) cost of goods sold, and I sales. View transaction I ak Journal entry worksheet + 1 2 6 7 B 8 12 > nces Record purchase of raw materials. Note: Enter debits before credits General Journal Debit Credit Date May 31