Problem 20-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 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 Ending Inventory Inventory Work in process inventory-cutting 193,500 135,500 Work in process inventory-stitching 107.000 Finished goods inventory 213,300 50, 100 38,250 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 $100,000 25,500 Direct labor Direct labor-cutting Direct labor-stitching Totill factory payroll paid in cash) $ 23, 100 92.400 173,500 Direct labor Direct labor cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 23,100 92,400 173,500 Factory Overhead (Actual costs) Indirect materials used Indirect laborused Other overhead costs $57,600 58,000 62,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $856,000 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) Finished Goods (FG)