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.

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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 $ 16,000 63,500 $ 17,950 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 Direct labor-Cutting Direct labor-Stitching $ 16,600 66,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs. Factory Overhead Rates Cutting Stitching Sales $ 35,000 22,250 $ 10,800 55,400 49,000 0 150% of direct materials used 120% of direct labor used $ 336,000 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 $ 16,000 63,500 $ 17,950 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 Direct labor-Cutting Direct labor-Stitching $ 16,600 66,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs. Factory Overhead Rates Cutting Stitching Sales $ 35,000 22,250 $ 10,800 55,400 49,000 0 150% of direct materials used 120% of direct labor used $ 336,000

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