(Solved): Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All di ...

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: Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Direct materials. Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching The following additional information describes the company's production activities for May. Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs Beginning Ending Inventory Inventory 103,500 123,300 32,100 Factory Overhead Rates Cutting Stitching Sales $55,000 23,250 0 $ 18,600 74,400 149,200 $ 25,200 56,200 53,000 90,500 79,100 20,250 (150% of direct materials used)) (120% of direct labor used) $496,000 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. Work in Process (WIP)-Cutting Work in Process (WIP) - Stitching Finished Goods (FG)