[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. Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Beginning Inventory Ending Inventory $ 16,000 $ 17,950 63,500 70,500 83,300 66,700 24,100 12,250 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 Direct labor $ 35,000 22,250 e Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs i $ 16,600 66,400 $10,800 55,400 49,000 Factory Overhead Rates) Cutting Stitching 150% of direct materials used 120% of direct labor used Sales $336,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching. (b) production costs transferred from Stitching to finished noors and (c) cost of noods sold Hint Compute the total production costs in each denartment and then subtract the ending 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 (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materials used. c. Indirect materials used d. Direct labor used e. Indirect labor used 1. Other overhead costs paid in cash g. Overhead applied h. Goods transferred from Cutting to Stitching i. Goods transferred from Stitching to finished goods J. Sales (on account) k. Cost of goods sold View transaction list View journal entry worksheet ces No Date General Journal Dibit Credit 1 May 31 Raw materials inventory Accounts payable 2 May 31 7 3 ' 4 E Work in process inventory-Cutting Raw materials inventory May 311 No Transaction Recorded May 31 No Transaction Recorded