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 163,500 120,500 Work in process inventoryStitching 183,300 97,700 Finished goods inventory 44,100 32,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 85,000 Direct materials usedCutting 24,750 Direct materials usedStitching 0 Direct labor Direct laborCutting $ 21,600 Direct laborStitching 86,400 Total factory payroll paid (in cash) 165,400 Factory Overhead (Actual costs) Indirect materials used $ 46,800 Indirect labor used 57,400 Other overhead costs 59,000 Factory Overhead Rates Cutting (150% of direct materials used ) Stitching (120% of direct labor used ) Sales $736,000 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.

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, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (l) sales.