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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

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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 83,500 80,500 Work in process inventory-Stitching 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 Row materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching $ 45,000 22,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 17,600 70,400 143,800 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $18,000 55,899 51,000 Factory Overhead Rates Cutting (1504 of direct materials used) Stitching (120% of direct labor used) Sales $416,000 Required information 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)

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