[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 Inventory Ending Inventory Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory $ 101,000 $ 122,500 233,500 155,500 253,300 119,400 58,100 46,250 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 Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used $ 25,100 100,400 $ 120,000 26,500 0 $ 72,000 Indirect labor used: Other overhead costs Factory Overhead Rates Cutting Stitching Sales 58,800 66,000 150% of direct materials used 120% of direct labor used $ 1,016,000 Problem 3-5A (Algo) Part 1 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