The following information applies to the questions displayed below.$]$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 InventoryEnding InventoryRaw materials inventory$ $76,000$$ $91,750$Work in process inventoryCutting$183,500130,500$Work in process inventoryStitching$203,300103,900$Finished goods inventory$48,10036,250$The following additional information describes the company's production activities for May.Direct materials Raw materials purchased on credit$ $95,000$Direct materials usedCutting$25,250$Direct materials usedStitching$0$Direct labor Direct laborCutting$ $22,600$Direct laborStitching$90,400$Factory Overhead $($Actual costs$)$ Indirect materials used$ $54,000$Indirect labor used$57,800$Other overhead costs$61,000$Factory Overhead Rates Cutting$150\%$ of direct materials usedStitching$120\%$ of direct labor used Sales$ $816,000$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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department.