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 Inventory 63,500 83,300 24, 100 Ending Inventory 70, 500 66, 700 12, 250 The following additional information describes the company's production activities for May. Direct materials Ras materials purchased on credit Direct materials used Cutting Direct materials used-Stitching $ 35,000 22. 250 0 Direct labor Direct laborCutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,600 66,400 138, 400 Factory Overhead Cactual costs) Indirect materials used Indirect labor used Other overhead costs $ 10,800 55, 400 49,000 Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $336,000 CH 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. Direct materials - Cutting Direct labor - Cutting Work in Process (WIP) - Cutting 22,250 WIP - April 30 16,600 WIP - May 31 63,500 70,500 Total factory payroll 38,850 Total factory payroll 134,000 190,300 Direct labor - Stitching Work in Process (WIP) - Stitching 66.400c of GM - Stitching WIP - May 31 70,500 Total factory payroll Total factory payroll 4,100 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. (1) payment of factory payroll. (a) other overhead costs, (credit Other Accounts). n) overhead applied, goods transferred from Cutting to Stitching. goods transferred from Stitching to finished goods. (k) cost of goods sold, and (1) sales View transaction fist Journal entry worksheet 5 6 7 8 ..... 12 Record purchase of raw materials. Note: Enter debits before credits Date General Journal Debit Credit May 31