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 Ending Inventory Inventory 83,500 80,500 103,300 72,900 28,100 16,250 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 $ 45,000 22,750 0 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 55,800 51,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $416,000 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. WIP - April 30 Direct materials - Cutting Direct labor - Cutting Overhead - Cutting Work in Process (WIP) - Cutting 83,500 C of GM - Cutting 22,750 17,600 123,850 Work in Process (WIP) - Stitching C of GM - Stitching WIP - April 30 IC of GM - Cutting Direct labor - Stitching Overhead - Stitching Finished Goods (FG) Cost of goods sold FG - April 30 C of GM - Stitching FG - May 31 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, () goods transferred from Cutting to Stitching, C) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (1) sales. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 May 31 Raw materials inventory Accounts payable 2 May 31 Work in process inventory-Cutting Raw materials inventory VI 3 May 31 Factory overhead Raw materials inventory c 4 May 31 Work in process inventory-Cutting Work in process inventory-Stitching Factory wages payable 5 May 31. Factory overhead Factory wages payable 6 May 31 Factory wages payable Cash 7 May 31 Factory overhead 8 May 31 Work in process inventory-Stitching Work in process inventory-Cutting Factory payroll payable 9 May 31 Work in process inventory-Stitching Work in process inventory-Cutting 10 May 31 Finished goods inventory Work in process inventoryStitching 11 May 31 Cost of goods sold Finished goods inventory 12 May 31 Accounts receivable Sales