[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 $ 11,000 $ 11,800 Work in process inventoryCutting 53,500 65,500 Work in process inventoryStitching 73,300 63,600 Finished goods inventory 22,100 10,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 30,000 Direct materials usedCutting 22,000 Direct materials usedStitching 0 Direct labor Direct laborCutting $ 16,100 Direct laborStitching 64,400 Factory Overhead (Actual costs) Indirect materials used $ 7,200 Indirect labor used 55,200 Other overhead costs 48,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $ 296,000

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.