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Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materlals 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 materlals enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: Beginning Inventory $ 71,000 173, see 193, 300 Ending Inventory $ 85,600 125 500 100,800 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory 46,100 34,250 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 $90,000 25,e00 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 22,100 88,400 168,100 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs 50,400 57,600 60,000 Factory Overhead Rates Cutting (150% of direct materials used) Raw Materials (RM) RM-April 30 71,000 RM purchases 90,000 Direct materials - Cutting 25,000 Direct materials-Stitching 85,600 50,400 RM-May 31 Work in Process (WIP) Stitching 193,300 C of GM- Stitching WIP -April 30 286,980 Direct labor- Stitching 88,400 Overapplied overhead - Stitching 106,080 WIP- May 31 100,800 Factory Overhead Indirect labor used 57,600 50,400 60,000 Indirect materials used Other overhead costs 168,000 Work in Process (WIP) - Cutting 173,500 C of GM- Cutting 25,000 132,600 WIP-April 30 Direct materials - Cutting Direct labor - Cutting 22,100 37,500 Overapplied overhead - Cutting WIP- May 31 125,500 Factory Wages Payable Finished Goods (FG) Factory wages Payaone werk in Process (Win1-Stiteningg 193.300Cof GM Stiching 286,980 WIP-April 30 Drect labor- Sttching 88,400 Overapplied overhead Sttching WP May 31 106.080 100 800 Finished Goods (FG) Factory Overhead 57600 Indirect labor used indirect matenials used oher overhead costs 50,400 60,000 168000 Income Statement (Partial) Cost of goods transferred Cost of goods sold

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